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Accounting Controls and Corporate Fraud

1. What would you consider to be important controls over cash at your organization?

2. Given the increased emphasis on corporate fraud, should auditors be required to look aggressively for fraud factors like collusion, circumvention and management override? Why or why not?

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1. What would you consider to be important controls over cash at your organization?

Not sure of what type of organization you work for so here is a good lead in that can be edited to reflect what you should have in place.

According to the US Department of Commerce's Office of Financial Management, "Internal controls over cash management are needed at all levels of the organization that handle cash and/or cash equivalents...Both program managers and financial managers are accountable for cash under their control" (2007, Ch 8, Sec 4). The use of immediate documentation methods for transactions is a sound way to ensure proper control and receipt of cash. By using serial numbered forms to document these transactions, auditors have a paper trail to validate proper use of funds. Periodic review of transaction documents will determine misuse of funds as well ...

Solution Summary

This solution provides examples of important internal controls and control issues and discusses agreement with the fact that auditors should look for fraud aggressively. This solution is 482 words with two references.

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