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With respect to fraud against companies, which do you think

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With respect to fraud against companies, which do you think is more prevalent, inside or outside jobs? Explain your position. Describe what you think is the number one target of an inside job versus that of an outside job.

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With respect to fraud against companies, which do you think is more prevalent, inside or outside jobs? Explain your position. Describe what you think is the number one target of an inside job versus that of an outside job.

Answer:

Inside jobs are definitely more prevalent. The people on the inside, whether it's a newly hired clerk or an executive, know how the company works from the inside. They know where the cash comes in at, who receives it, the basic avenue it follows. The people on the inside know how and when accounts get updated, and what is where within the computer systems. The number one target of inside jobs is getting the cash. People on the inside see that the biggest asset the company has is cash. The employees, whether it's a sales ...

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With respect to fraud against companies, which do you think is more prevalent, inside or outside jobs? Explain your position. Describe what you think is the number one target of an inside job versus that of an outside job.

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Fraud Controls at Andragon

Can you help me get started with this project?

After analyzing Andragon's financial statements and logging several months on the job, you began to notice that the company's average cash balance is unusually low in respect to its sales and productivity. As such, you began to suspect fraud. After several weeks of investigation, you began to suspect that Karen Smith, the company's bookkeeper, is in cahoots with one of the firm's suppliers, whose owner happens to be Karen's brother-in-law. From what you can tell so far, the supplier is submitting bogus invoices for material that was never received by ANDRAGON. Karen, in turn, has been approving the invoices and cutting checks to the supplier in exchange for a "cut." After reporting your suspicions to John Edward, Andragon's CEO, he has instructed you as follows:

1) Dismiss Karen immediately. Keep the matter quiet, especially in light of the fact that the company is currently looking at the possibility of going public.

2) Work with an outside group to develop an effective anti-fraud control system for the company.

As part of your presentation to Mr. Edwards and the management of Andragon, your group is to prepare an 8-12 slide presentation detailing some specific control systems that need to be implemented at Andragon as soon as possible to help reduce or avoid similar incidents.

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