Economic Assignment | Economic Crime
Added on 2020-05-16
9 Pages1837 Words70 Views
Running head: ECONOMIC CRIMEEconomic CrimeName of the StudentName of the UniversityAuthor Note
1ECONOMIC CRIMETable of ContentsIntroduction......................................................................................................................................2Internal Control................................................................................................................................2Top Management.........................................................................................................................3Middle management....................................................................................................................3Audit committees.........................................................................................................................3Internal auditors...........................................................................................................................4Legal counsel...............................................................................................................................4Corporate Security.......................................................................................................................4Comprehensive fraud prevention plan.............................................................................................5Conclusion.......................................................................................................................................6Reference List..................................................................................................................................7
2ECONOMIC CRIMEIntroductionAlthough there are several methods to ensure effective fraud prevention but the mosteffective method to ensure a company is prevented from being defrauded is strong internalcontrols. However, apart from string internal controls, the attitude of a company towards fraudand an ethical organizational culture is equally important to ensure fraud prevention (Petraşcu &Tieanu, 2014). While an ethical culture within an organization is driven by the controlenvironment of senior management which is also known as the ‘tone at the top’, the Auditcommittee and Board of Directors also have significant roles to play to prevent a company fromfraudulent conducts. Internal ControlInternal control is widely defined as a process that is influenced by the board of directorsof a company, management and personnel which strive to provide reasonable assurance withrespect to the achievement of objectives in certain categories such as efficiency and effectivenessof operations, compliance with applicable regulations and laws and reliability of financialreporting of the company. Internal Controls must not be considered as ‘static’ as they are fluidand dynamic set of tools that has evolved over time because of the changes that takes place in thetechnology, business and fraud environment in respond to industry practices, competition,regulation, legislation and current economic conditions. In respect to the given case study, in order to strengthen the internal control, it isimportant to conduct a comprehensive review of risks that the company had faced that is, thethree significant financial frauds. Besides, it is also important to conduct a review of the all the
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