Management is aware of the increased requirements for a public company to maintain a system of internal control to help prevent and detect fraud. The CEO, Mary Moore, is also interested in using a proactive posture toward building an antifraud prevention program, including exploring using a proactive auditing approach to fraud discovery. The internal auditor and the external fraud investigator as well as accounting and consulting firms have discussed proactive approaches for detecting fraud.
Management is aware that eliminating the opportunity for fraud is critical. Recently, the Institute of Internal Auditors (IIA), the American Institute of Certified Public Accountants (AICPA), and the Association of Certified Fraud Examiners have adopted a comprehensive guide for managing the business risk of fraud.
Please answer the following questions in preparing this 4â?"6 page paper. As you answer each question, you must provide support or evidence that will enhance and empirically prove your answers. Academic criminal justice articles or real life criminal justice findings that are not found in journals or other academic sources must be used in supporting your answers. Please use APA style for all cited sources, including your reference page.
What are the benefits of a comprehensive control program? If you were advising this corporation, what would be the specific benefits for them?
What would be the procedures that should be considered for detective controls, including independent checks and a system for documents and records?
Discuss the possibility of a fraud hotline as part of your program. How can a hotline be implemented as a tool for preventing and detecting fraud? Provide an overview of steps that you would take for a successful implementation if the corporation wanted this option.
Title: TAX LAW
There is normally a flat rate available to any taxable income within a country for example, under the US corporate tax rate; a flat tax rate of about 35 percent which amounts to about 18,333,333 US dollars annually for a taxable income is recorded. For any available income less than the 35 percent flat tax rate are recorded using graduating rates with the lowest rate being 15 percent. The graduating rates apply to single corporations progressing amounts of the income phase out as the taxable income of a corporation rises from 100,000 USD to 18,333,333 USD. The end result of this action results to the members of a controlled group of individuals or corporations be treated in a similar manner to that of a single corporation (U.S tax rates n.d).
In the United States, all corporate entities are viable to paying the United States company tax except in cases whereby exemptions are made whereby an organization has to pass through some special rules first. Organizations which are incorporated within the tax subject in the United States depending on their foreign corporations and income are only tax subjects because they have an effective income which is connected to a US trade or even business.
Loss prevention policies are examined. How to detect fraud is determined.
Safeguards - Management
You have identified the strategies that you want to implement in your business in the letter to your relative.
1. What safeguards and controls would you and your partners put in place to ensure that the goals identified can be pursued ethically?
o Safeguards are policies, procedures, or mechanisms that when effectively applied serve to reduce or eliminate risks that could result in harm or loss. Examples include: personnel policy and procedures, risk management policies, safety training, loss (theft) prevention training, loss prevention devices (cameras, etc.)
o Controls are: Management process of monitoring an organization's performance to ensure that it is meeting its goals. Examples include: sales volume monitored, customer service complaints monitored, monitoring inventory levels, keeping track of overtime expenses, and monitoring expenses and budgets.
2. What two ways will your business be socially responsible?View Full Posting Details