Forensic Accounting and Fraud Examination
Case Study 1: And the Fraud Continues
1. Discuss the internal control weaknesses that existed at MCI that contributed to the commission of
2. Identify and justify the approach you would take if you suspected fraudulent activity within an
organization where you work.
3. Critique the ethical nature of Pavlo's actions in this case.
4. Apply one (1) theory related to crime causation to this case.
The specific course learning outcomes associated with this assignment are:
- Examine the employment opportunities, roles, and skill set for fraud examination and financial
- Analyze the theories related to crime causation, the essence of crime, organizational environment
conducive to crime, and ethical issues related to fraud.
- Use technology and information resources to research issues in forensic accounting.
- Write clearly and concisely about forensic accounting issues using proper writing mechanics.
And The Fraud Continues:
The case provides an analysis of Pavlo and how he conducted some criminal acts such as conducting fraud within the MCI organization, obscured justice from service its course through changing several processes of the organization, and finally pleading guilty to all the criminal acts that he was engaged in and later was sentenced for several months in prison.
The purpose of this paper is to provide an analysis of the case study, with the relevant crime causation theory related to the case.
Internal control weakness that contributed to the Fraud:
Fraud refers to the act of using deceit to carry out undesirable activities which are intentional for the purpose of benefiting one personal self. Within the criminal law, fraud is considered to be undesirable and it is a crime which has a sentence as required by the legal jurisdiction. Typical organizations are known to loose at least five percent of its revenues to fraud whereby if the owner or the executive is the one who committed fraud, the cost that the organization experiences is more than nine times the employee fraud which is about $160,000 (Murphy & Dacin, 2011).
Fraud can be as a result of several issues for example, from the case study, fraud was as a result of several internal control weaknesses which existed at the MCI organization. The process which governed the accounting system in the organization is considered as one of the internal control weakness which contributed to the fraud activity being carried out. The reason behind this is that, it was easier for Pavlo to manipulate the processes and even make it easier for him to carry out the fraud without being easily noticed. If the organization had stronger processes, it could not have been that easy for him to carry out the fraud activity even if he was a manager at that organization.
Approach you would take if you suspected fraudulent activity ...
This solution provides a detailed discussion of the given forensic accounting problems.