Fraud Detection The Value Of Internal Control - 6023 Words

EMPIRE STATE COLLEGE OF THE STATE UNIVERSITY OF NEW YORK AUDITING FINAL PAPER FRAUD DETECTION: THE VALUE OF INTERNAL CONTROL by OLUIMI AKINDEINDE 2012 Abstract Fraud is present in all aspect of life. It is very common in business environment. Business organizations try to do their best to ensure that fraudulent practices do not put them out of business. Case study is used to establish the value of internal anti-fraud control and to point out that a small business can implement it with common sense and solid auditor’s advice. Introduction Occupational fraud poses a large threat to small businesses (ACFE, 2012). Research data suggests that the smallest organizations suffered disproportionately the largest median†¦show more content†¦Victim organizations that had implemented any of sixteen common anti-fraud controls experienced considerably lower losses and time-to-detection than organizations lacking these controls. Nearly half of victim organizations do not recover any losses that they suffer due to fraud. As of the time of the survey, forty-nine percent of victims had not recovered any of the perpetrator’s takings. The report further showed that seventy-seven percent of all frauds in the study were committed by individuals working in one of six departments: accounting, operations, sales, executive/upper management, customer service and purchasing. Most perpetrators of occupational fraud are first-time offenders with clean employment histories. Approximately 87% of the perpetrators had never been charged or convicted of a fraud-related offense, and 84% had never been punished or terminated by an employer for fraud-related conduct. In eighty-one percent of cases, the perpetrators displayed at least one behavioral red flag among behaviors that are often associated with fraudulent conduct—living beyond their means, financial difficulties, unusually close association with vendors or customers, and excessive control issues were the most common behavioral warning signs addressed in theShow MoreRelatedWeek 1 Acc5561135 Words   |  5 PagesInternal Accountant’s Report to Management ACC 556 This report will present the necessary information needed to understand and decide whether to perform a full financial status review before proceeding with the bid. The information covered will include: * The effect of occupational fraud and abuse on the company * U.S. governmental oversight of accounting fraud and abuse and its effect on the company Potential corruption schemes to be aware of in the company Recommendation of typesRead MoreFraud, Corruption, Theft, Misappropriation, And Fraud1738 Words   |  7 PagesThere is no specific definition for fraud if looked at from different perspectives. The term fraud is used to describe acts such as deception, corruption, theft, misappropriation, false presentation, bribery, fault partnership, forgery etc. Some may even describe fraud as practical process of deception to gain an advantage, or to cause loss to another entity or individual. While some people might not even anticipate to commit fraud, others might do so if they contemplate they have a way to be covertRead MoreInvestigating The Failure Of Fraud Detection982 Words   |  4 Pagescrimes that can last for months or even years before detection. It has been identified that there are three factors that often combine to lead individuals to commit fraud: pressure or an incentive to engage in fraud, a perceived opportunity and the ability to rationalize fraudulent behavior. Because f raudulent activities are usually well planned and intentionally covered up, it is difficult for the auditor to detect these incidents. Although fraud does not happen as often as misuse and error, whenRead MoreDonald R. Cressey s Theory Of The Occupational Offender1163 Words   |  5 Pagespoint, they started embezzling from their employer (Wells, 2013, p. 13). Cressey’s hypothesis was that embezzlers or â€Å"trust violators† had three common characteristics (Wells, 2013, p. 13). These three characteristics would later become known as the â€Å"fraud triangle† (Wells, 2013, p. 13). Frist, the trust violator had to have a â€Å"non-shareable financial problem† (Wells, 2013, p. 13). A non-sharable financial problem was a problem that the embezzler, for whatever reason, wouldn’t share with someone elseRead MoreThe Data Analysis, Finding, Discussion2671 Words   |  11 Pagescompared with the systems of internal controls prescribed by the management of the organization using related literature as basis of data analysis and discussion of the relevant findings. ANALYSIS OF DATA RECEIVED IN RESPECT OF THE STUDY FINDING AND DATA ANALYSIS The first researcher which involved impact of internal control measures on preventing and detecting fraud: PROFESSIONAL QUALIFICATION OF STAFF Objectives one: Verify how competent staff in charge of internal control are: In table 4.6, 25%Read MoreThe Responsibility of the External Auditor and the Management of the Entity Being Audited with Relation Fraud and Error.1575 Words   |  7 PagesAssignment number :01 Course code: HONOUDK Student number: 36894206 The responsibility of the external auditor and the management of the entity being audited with relation fraud and error. 1.Introduction Fraud is defined as something that is intended to deceive people and error is defined as something unintentionally done wrong, e.g. as a result of poor judgment or lack of care by Encarta English Dictionary. After the collapse of great companies like Enron, and World com to mention a few, itRead MoreUnderstanding Financial Statement Fraud And Financial Statements1730 Words   |  7 PagesUnderstanding Financial Statement Fraud Anna Gallagher American Public Universityâ€Æ' Understanding Financial Statement Fraud Financial statement fraud is any intentional or grossly negligent violation of generally accounting principles (GAAP) that is undisclosed and materially effects any financial statement. Fraud can take many forms, including hiding both bad and god news. Research shows that financial statement fraud us relatively more likely to occur in companies with assets of less than $100 millionRead MoreInternal Audit Function and Fraud Detection in Government Agencies. Acase Study of Naads Kumi7549 Words   |  31 PagesPerela, (2009), Internal auditing function with other intervention mechanisms like financial reporting and external audit to helps maintain cost-efficient contracting between owners and managers. It is designed by government agencies to add value and improve organizational performance. It helps organizations accomplish their objectives by bringing a systematic, disciplined approaches to evaluate and improve the effectiveness of risk management, control and governance processes.â €  Internal audit helpsRead MoreFinancial Statement Fraud And Corporate Financial Fraud1310 Words   |  6 PagesFinancial Statement Fraud Background Financial statement fraud is one of the biggest types of fraud in today’s business world. The complexity and mechanism of financial statement fraud brought the attention of auditors and regulators. Financial scandals of Enron, WorldCom, Xerox, Tyco, Parmalat, Qwest, and Satam Computers increased the auditors’ responsibility in detecting and preventing fraudulent transactions. Corporate financial fraud had negative consequences for the market capitalization dueRead MoreFraud Management : An Architectural Insight1144 Words   |  5 PagesFraud Management - An Architectural Insight Introduction Fraud is like Love. Many believe they are immune to it. Yet they make themselves available, to fall into. Successful fraud gives a new high for the fraudsters and sleepless nights for the organizations running after securing the wealth. This rush to secure the Holy Grail from reaching the fraudsters also causes a high for a broader section of the ethical technical audience who strive to ring fence their organizations. It is quite a feat to

Physical And Non Physical Violence - 1695 Words

This article represents a research done on a quantitative review on the physical and non-physical violence, bullying and sexual harassment that nurses in various hospitals experience. The purpose of the research was to estimate exposure rates by type of violence, setting, source and world region. In the modern world, visiting medical centers is one of the norms and hence the involved parties cross paths occasionally. Since the nurses take care of the patients more, they tend to face both physical and non-physical violence, bullying and sexual harassments as they try to cope with the environment that is flooded with new individuals every other day. The characters of these individuals vary and so is the way the nurses try to relate with each of these individuals. The nurses may face these challenges from either the patients themselves or the relatives of these patients. Both the physical and non-physical aspects being researched on cause various problems, especially physiological effects and hence need help and training on how to deal with such situations. Such research should therefore be done to help sensitize the society on the different challenges that nurses faces as well as their extremes. Literature review The research was done using various secondary sources in order to provide a reliable report on the quantitative review of the abuse that nurses undergo. Some of these sources were obtained from CINAHL, Medline and PsycInfo data bases. These databases are recent andShow MoreRelatedLateral Violence As A Non Physical Act1368 Words   |  6 PagesLateral violence is described as a non-physical act occurring between individuals and is intended to hurt another person emotionally. It may be a secretive or noticeable act of verbal or non-verbal hostility. The actions can extend exterior to the place of work and can be perpetrated individually or in cyberspace. Within the nursing community, lateral violence is described as aggression behaviors amongst nurses. The most common forms of lateral violence in the nursing practice include: underminingRead MoreIntimate Partner And Sexual Violence1555 Words   |  7 PagesIntimate Partner and Sexual Violence 2010 survey, will provide statistical inf ormation on victims who experienced one or more violent crimes from their husband, wife, boyfriend or girlfriend. These crimes arrange from stalking, rape, to physical and mental abuse. It will examine the impact of intimate partner violence on gender, race, and ethnicity. This report will give an overview of health consequences and the implications for prevention for Intimate Partner and Sexual Violence. 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In the late twentieth century, feminist groups began a campaign to accomplish a goal to eliminate family violence by changing people’s realization to conclude that no victim should leave a crime unsaid .in addition, twenty-eightRead MoreU.s Overseas Military Presence Activities844 Words   |  4 Pagesmilitary presence is that it consists of all the US military assets in overseas areas that are engaged in relatively routine, regular, non-combat activities or functions.1 By this definition, forces that are located overseas may or may not be engaging in presence activities. 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Batterers cost nations fortunes in terms of law enforcement, health care, lost labor and general progress in development. These costs do not only affect the present generation; what begins as an assault by one person on another, reverberates through the family and the community into theRead MoreViolence Against Children Essay1013 Words   |  5 PagesViolence against children is a phenomenon happening worldwide, in forms of physical, psychological violence. Children are deprived of care, basic social services, health care and education, child abuse, neglect, exploitation, forced to beg, trafficked. Children are still one of the social groups at risk, facing many problems that remain unresolved. Although the consequences may vary according to the type and severity of the violence, the short and long-term con sequences for children are very oftenRead MoreNon Violent Attempts At Preventing Domestic Abuse1612 Words   |  7 Pagesthe conflict. This essay aims to analyze the plethora of non-violent attempts at preventing domestic abuse, the major stakeholders, the origin of the issue, as well as consider multiple perspectives on men and women’s roles in halting the issue The Nature and Extent of Family Violence The following are aspects important to consider on the topic of domestic abuse before addressing solutions: 1. According to the Findings of the Nation violence Against Women Survey, out of eight-thousand women surveyed

Key Components of Business Continuity Plan †MyAssignmenthelp - com

Question: Discuss about the Key Components of Business Continuity Plan. Answer: Introduction Management Information System is famous among business organizations and other computer users to implement organizational structure and dynamics of the enterprise, so that management of organization can be done in better ways. It is also necessary to enhance competitive advantage of organization. There are various essential concepts that are related to MIS such as data, information, knowledge, systems, connectivity, cardinality etc. Data: Data is considered as unprocessed fact and figures without any analysis or interpretation For Example: The price of crude oil is $80 per barrel. It is a raw form of information i.e. data. Information: After analyzing or interpreting data, information is generated. That is why information is known as interpreted form of data which is meaningful for users. For Example: The price of crude oil has hiked from $70 to $80 per barrel. It gives meaning to data and it will be considered as information to someone who tracks oil prices (Infogineering.net, 2017). Knowledge: It is considered as combination of information, experience and vision that will provide benefit to an individual or the organization. For Example: The increment of $10 per barrel of oil will increase petrol prices by 2p per liter. It is knowledge (SearchDataManagement, 2017). Following are some essential challenges of managing information system: In case of development of management information system, the main challenging factor is of added labor and project cost. The rapid development of software to meet dynamic market demands is also a big challenging factor of MIS. Quality control and lack of knowledge of technical needs is also a challenging factor of MIS. A set of detailed methods, routines and procedures is defined as system and it is created for implementing a specific activity or problem solving tool. If we talk about business system then it is a group of varied and interdependent applications and it also consists of other system resources that interact to complete specific business functions. The example of business system is an email system. The boundary of email system are security and privacy issues of email content that can be hacked by hackers. The environment of email system comes under category of groupware environments that are used to access and management of users email. Email system is made up with some essential components and these components enhance reliability and usability of email systems. User Agent or UA is main component of email system and it works as GUI interface for users. Another components of email system is Message Transfer Agent or MTA. These MTAs act as sorting offices that route all messages that are required to send to all in a group (www.tutorialspoint.com, 2017). Connectivity in ER-Diagram describes the relationship classification. It means a connectivity of relationship describes the mapping that is associated with occurrences in a relationship. The total values of connectivity can be one or many. The main types of connectivity in ER diagrams are One to One (1:1), One to Many (1:M), Many to One (M:1) and Many to Many (M:M). Connectivity shows in ER-Diagram as below (Management Information Systems, 2017): On another side cardinality states occurrences of entity both minimum and maximum that are associated with one occurrence of related entity. The limits of cardinality are resulting from the policies of organizations and external constraints. For Example: A university has a policy that each subject will be taught by only one teacher. But it is possible to have subjects that are not specified to any other teacher. The cardinality can be shown as follows (Coursehero.com, 2017): The deployment, development and promotion of tools is done by IT to support communication, collaboration, management of project and sharing of information. The example of tools that are used by IT to support communication and collaboration are email, websites, and document sharing and project management. By using these tools, it becomes easier to communicate with people who are remote locations. With email, text messages with file attachments can be sent and received from individuals, websites can be used for online chats, calling and sharing of information and for managing large and small projects. These communication ways collaborate individuals from different locations to discuss about a particular topic. Besides this, for remote business meetings, online learning and in video conferencing IT provide so much help. Various new tools and techniques for communication are developed by IT developers such as smart phones, computers and other devices for better communication and sharing information in secure and reliable way. Various new web-based systems are also developed that has mission to support of communication and collaboration (Its.sfsu.edu, 2017). Besides this technology, some other essential technologies are also developed such as virtual reality, multimedia, robotics and ubiquitous computing etc. to provide better business and personal communication and sharing of information. Mobile phones have become the first choice of people for communication and to send media files, images and text information (Guru99.com, 2017). Information technology architecture and Information vision is a shared understanding about how computer technology should be managed and used in business. Information technology architecture shows the way that must be used to deploy information resources to deliver information vision. On another side, the written appearance of desired future for use of information and management in the organization, is known as information vision. This is the main difference among information vision and IT architecture. Besides this, the creation of information vision starts with assumption that how in future competitive environment of business will change and how from this company can take advantage. If business vision is specified then it will be easier to write information vision. Further, if we are cleared with the use of information vision in future, then IS organization can design an architecture for information technology. This architecture will help to state that how the resources will be ava ilable to users. In this way, information technology and information vision are required by IT organizations to get appropriate knowledge about information technology. Information vision and information technology architecture provides the managerial, business and technical platform that is required to plan and executing IS operations in the firm (Www0.cs.ucl.ac.uk, 2017). An organization often have several database because there are many different applications that require a database with particular set of database objects which is commonly known as schema. It is easier to have many application projects or single application projects in a single database. If only one database will be used in organizations to store different projects then in case of any cyber-attack or other security issue whole data of projects that will be stored into one database will be lost (Ecomputernotes.com, 2017). But if different databases will be used to store multiple projects then affected database will not put impact on other databases and their content. Therefore, for better security achievement several databases are often used in organizations rather than single database for storing multiple projects. By data dictionaries no any actual data is contained from database, only bookkeeping information is contained into data dictionary that is required to manage database. The refore, in management of database, data dictionary plays an important role. Without a data dictionary it is difficult for a database management system to access data from database. Data dictionary software is only used by designers, users and administrators, not by the DBMS software. This term commonly known as passive data dictionary (BusinessDictionary.com, 2017). Password is an important log credential that is commonly used by IT users to login into their systems, databases and in a website account. But it is no more secured to use passwords for security purpose, because now hackers have various tools to hack passwords. Password is simpler than other forms of security such as fingerprint ID machines, special key cards and retinal scanners (Symantec.com, 2017). These security tools are costlier than password and also secured. It has become a conventional way to maintain security of databases and another storage devices. Password is generally used with combination of username, email-address and account number. For hackers it has become common to hack this combination as compare to other available security tools and their key combinations. That is why passwords are considered as ineffective technique of authentication (Yourbusiness.azcentral.com, 2017). On other side, PIN is also considered ineffective, but it is safer than passwords. The reason of ineffectiveness of PIN is that it is a combination of numbers or words which is also easier to guess by hackers if it will not be kept secure by users. Mostly users use simple pin codes to remember such as date of birth etc. But it is possible by hackers to understand and access it. An effective business continuity plan is required to restore company operations, protection of reputation and to reduce the risk of serious financial loss. A business continuity plan works effectively with its components that are related to each other. The key components of business continuity plan are risks and impacts, response and resources, contacts and communications, duties and priorities and testing and maintenance. These components are related to each other in a way that every components information is used in next component for effective planning. For Example: if in business continuity plan risks and impacts of a business project or activity will be defined then this information can be used further to response or for decision making about resources of that project and activity. In this way, result of one component can be used in next component of business continuity plan. It is an effective way to perform business functions appropriately (Webopedia.com, 2017). PAPA stands for Privacy, Accuracy, Property and Accessibility. It is ethical model that categorizes information ethics about privacy, accuracy, property and accessibility. Here privacy is an ability of individuals for controlling information about themselves. Privacy is the right of every individual so that no unauthorized entity can access or disclose their information to others. Accuracy is related to maintenance of security of data. Accurate information is error-free, complete and also relevant for decision making that are based on this information. Here property is collection of personal data. Property always encounters issues of copyright. That is why property such as computer software and computer files are protected by copyright laws. At last accessibility is making data accessible to all its potential users (Slideplayer.com, 2017). Censorship is an effort to overcome the availability of media contents that are considered violent. Any kind of speech or information that is considered objectionable, harmful and sensitive, suppressed by censorship. The ethical issue of censorship are that it is controlled by media experts, but it should also comply with laws (Digitus-Biometrics, 2017). The main drivers of technological change are: Demographics such as change in population and worlds growing population. Science and Technology such as knowledge and innovation. Global economy i.e. trade and interdependent market. Governance and institutions such as political organization. Environment such as global ecology, social and environmental pressure and carrying capacity etc. Evident based threats such as infrastructure and civilization (Its.sfsu.edu, 2017). Rise in economic and quality of life ambitions in world of development. These are some essential drives that put influence over technological change. All technology development companies are aware about these drives and implement their changes accordingly. Every driver has its own importance and play an important role in technological change. Conclusion In this report, we have discussed various essential factors about MIS and all these factors contribute in enhancement of effectiveness of Management Information System. That is why, today in most of large and small business organizations MIS is highly preferred. References Infogineering.net. (2017). The Differences Between Data, Information and Knowledge :: Infogineering - Master Your Information. [online] Available at: https://www.infogineering.net/data-information-knowledge.htm [Accessed 16 May 2017]. SearchDataManagement. (2017). How to define data, information and knowledge. [online] Available at: https://searchdatamanagement.techtarget.com/feature/Defining-data-information-and-knowledge [Accessed 16 May 2017]. www.tutorialspoint.com. (2017). MIS Introduction. [online] Available at: https://www.tutorialspoint.com/management_information_system/management_information_system.htm [Accessed 16 May 2017]. Management Information Systems. (2017). What is MIS?. [online] Available at: https://mis.eller.arizona.edu/what-is-mis [Accessed 16 May 2017]. Guru99.com. (2017). Cite a Website - Cite This For Me. [online] Available at: https://www.guru99.com/cloud-computing-for-beginners.html [Accessed 16 May 2017]. Its.sfsu.edu. (2017). Communication and collaboration | Information Technology Services. [online] Available at: https://its.sfsu.edu/content/communication-and-collaboration [Accessed 16 May 2017]. Coursehero.com. (2017). Connectivity and Cardinality Connectivity Describes the relationship. [online] Available at: https://www.coursehero.com/file/p68cboi/Connectivity-and-Cardinality-Connectivity-Describes-the-relationship/ [Accessed 16 May 2017]. Ecomputernotes.com. (2017). What is the Basic Construction of E-R Modeling?. [online] Available at: https://ecomputernotes.com/fundamental/what-is-a-database/basic-construction-of-e-r-modeling [Accessed 16 May 2017]. Www0.cs.ucl.ac.uk. (2017). Components of Email System. [online] Available at: https://www0.cs.ucl.ac.uk/staff/jon/bt15/l12/sld007.htm [Accessed 16 May 2017]. BusinessDictionary.com. (2017). How has this term impacted your life?. [online] Available at: https://www.businessdictionary.com/definition/system.html [Accessed 16 May 2017]. Yourbusiness.azcentral.com. (2017). The 10 Key Components of a Business Continuity Plan. [online] Available at: https://yourbusiness.azcentral.com/10-key-components-business-continuity-plan-3433.html [Accessed 16 May 2017]. Symantec.com. (2017). The Simplest Security: A Guide To Better Password Practices | Symantec Connect. [online] Available at: https://www.symantec.com/connect/articles/simplest-security-guide-better-password-practices [Accessed 16 May 2017]. Digitus-Biometrics. (2017). Say bye to passwords!. [online] Available at: https://www.digitus-biometrics.com/blog/say-bye-to-passwords/ [Accessed 16 May 2017]. Webopedia.com. (2017). What is Data Dictionary? Webopedia Definition. [online] Available at: https://www.webopedia.com/TERM/D/data_dictionary.html [Accessed 16 May 2017]. Slideplayer.com. (2017). Information Vision and Architecture - ppt download. [online] Available at: https://slideplayer.com/slide/5816667/ [Accessed 16 May 2017]. Its.sfsu.edu. (2017). Communication and collaboration | Information Technology Services. [online] Available at: https://its.sfsu.edu/content/communication-and-collaboration [Accessed 16 May 2017].