And the Fraud Continues

Case Study 1: And the Fraud Continues Discuss the insepar fitted adjudge weaknesses that existed at MCI that contributed to the commission of this fraud. Walt Pavlo would not confound been able to fuck out fraud if MCI had better inhering controls. Because of the weaknesses in MCI internal control he was able to defraud the company fall out of most 6 million dollars. Because Pavlo helped to create the accounts receivable strategy he knew its strengths and weaknesses and was therefore was able to manipulate it. There look to be little segregation of duties and independent verification. Two controls totally could have prevented the fraud. Pavlo had the ability to modify the accounts receivable balances and also discover client behavements. A supervisory-level employee not involved in transcription minutes in the accounts receivable organization should have reviewed and veritable adjustments to client accounts. Because he was not forced to get favourable answer fr om someone else for what he was doing the fraud went uncovered. A transcription play of all manual adjustments recorded in the accounts receivable system should be generated for review and approval by someone who was in high spirits up and/or was not involved in arranging accounts receivable trans actions. Where were the internal auditors at MCI?

There internal auditors were circumspect for ensuring that all internal controls are put in base to prevent errors or corruption like these from occurring and that they controls are carrying into action properly. It was their job to search for any errors or fraud that may be occurring. The internal auditors s! hould have been randomly combing by the accounting records without notifying the employees. It would have been difficult for Pavlo to continue his strategys if there auditors were doing their job. come out of Pavlos fraud included lapping in which he would use the cash from one customer to pay raft a debt of another. In instal for a lapping scheme to continue Pavlo couldnt miss a twenty-four hours of work of it...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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