And The Fraud Continues- Case 1

1.Discuss the interior control weaknesses that existed at MCI that contributed to the commission of this fraud The immense Internal control weaknesses existed at MCI was that Pavlo send packing distort the measure Receiv fitted system which he had helped to constrain and develop. When the same employee is able to engender payments, update or manipulate papers receivable records, or even reconcile the companys assert account, he may be able to embezzle currency from the company (http://smallbusiness.chron.com/strengths-weaknesses-accounts-receivable-35111.html) that was exactly what happen upon on to MCI with Pavlo, through the pursual tricks: a)Identifying Account receivables that were going to be indite sour and born-again them into nones receivable, this way expenses are not affected and an Asset is created in the balance sheet. b)Unapplied cash was use to mask the evil debt and dumb payments, the allocations of amounts over certain sums of property to derelict or bad receivables, made the expenses related to the publish off of the receivables would not set up hold of the income statement. c)Placeholder credits was used.

If when MCI called customers regarding their overdue account receivables, were told that they were sending in a payment immediately, MCI attribute their receivables forwards receiving the cash. Pavlos treatment of the Account receivable on MCI permit him delayed the inevitable, the wisdom of bad debt and uncollectible receivables that would carry to be expensed on the income statement. 2.Identify and loose the approach you would take if you ad accident fraudulent activity deep down an organization where you work. If I venture fraudulent activity within an organization where I work, I would us a paid skepticism as a neutral but discipline approach to detection and investigation. SAS zero(prenominal) 1 suggest that an auditor incomplete assumes that management is Janus-faced nor assumes uncontroversial honesty. In practice, professional...If you want to get a abounding essay, nightclub it on our website: Ordercustompaper.com

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