Accounting Information Systems

Fraud is a problem which has been gaining increasing attention. As engineering science has become more a part of everyday await and organizations depend on it to run their organizations, they face dealing with realizable fraud situations. The Greater Providence Deposit and Trust defalcation is one such example. With this situation, fraud was committed when a trust employee chose to put through brings for people who did not exist or who were not really applying for loans. Once the loans were processed, he would cash the checks from the loans. By pretending to represent other people and deceiving the bank building, the manager took travel which constituted fraud and caused the bank losses.
In order for the bank to avoid situations such as this embezzlement, it needed to make convinced(predicate) it had appropriate internal defys and procedures in come forth. Take a look at what the manger was able to do, this shows the bank did not pack sufficient internal controls which contributed to the embezzlement. The bank did ca-ca certain specifications of how practically the loan manger could approve and what should happen if the loan finishing amounts were higher. While the procedures were there, the controls for the procedures were not.




Some sort of documentation showing the loan committees approval should dedicate been attached with the loan application paperwork along with the required credit history from an independent firm. A unoriginal review should also have taken place careless(predicate) of the amount of the loan as a preventative control measure. Training the employees on the bank procedures for these areas might also have helped with the understanding of what needed to be done and could have been a flag to the employees they needed to bring items to the banks attention. By having policies and procedures in place and testing those procedures as a control, bank headquarters could have minimized its risk.
In addition to the controls being put in place at headquarters, other controls should have been in...If you want to run a full essay, order it on our website: Ordercustompaper.com



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