A potential control for managing the risk of employee fraud is to send employees on mandatory vacations. Explain the relation of that control with the payroll function. Why will it be a good idea to require the payroll clerk, who writes checks, to go on a vacation? Provide examples from real life and discuss and share your experiences if any.© BrainMass Inc. brainmass.com October 25, 2018, 2:24 am ad1c9bdddf
This control is common because if there is a mistake that is being made consistently, it may not be noticed unless it is not made for a week or so. For example, an employee who is also a bank teller can be off by $100 and pocket the money. If she's always $100 off, her drawer will balance ...
Why will it be a good idea to require the payroll clerk, who writes checks, to go on a vacation?
Weighing Risk & Return, Insurance, Internal Control Systems
1. How would you weigh risk against return? Is there a point when return makes risk invalid? Explain your answer well.
2. When is insurance beneficial? Is insurance ever not beneficial? Explain your answer very well.
3. Where would you begin an evaluation of an internal control system? Please explain why?
4. What are some major components of an internal control system? Are these components always necessary? Explain your answer.
5. Explain the details of a fraud scheme that internal controls, due to inherent limitations, cannot impede
6. Describe some considerations for observing physical inventory. Explain a fraud scheme that could be used for inventory.
7. Explain how a company's growth can outpace current controls and provide an example
8. Explain some major risks inherent in the payroll cycle. How can these risks be mitigated?
9. Explain how controls and security are related for information assets
10. Explain the links between business continuity, system availability, and disaster recovery?View Full Posting Details