Case Study of Information Governance

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Added on 2020-03-23

Case Study of Information Governance

Added on 2020-03-23

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Case study 1INFORMATION GOVERNANCEAuthorCourseProfessorUniversityCity, StateDate

Case study 2INFORMATION GOVERNANCEInternal fraud within organizations is common and results in loss in terms of revenue and at times that of reputation. If not handled in a timely manner, it can lead to future occurrences and sets a bad precedent. The case at HH involved an employee who was employed for a relatively short period and the fraud perpetrated led to the loss of $80,000. He was able to take advantage of the internal organizational weaknesses of the hospital. In order to prevent such a fraud being repeated in the future, an information audit plan is recommended which will seek to remedy the institutional gaps currently manifest at the institution. Question oneTechnical- The technical reason that contributed to the prospect of fraud was the information system used at HH. The system shows the weakness of not having incremental security checks in order to ensure security protocols are not broken (Seago 2016). The ideal system should have started with the account payable clerks feeding the system with data about vendors. It should ideally have directed to one senior clerk who is tasked with counter-checking. The assistant manager should have counter checked for accuracy and finally ended with the approval of the manager. The incremental security protocols of checking and counter-checking would have reduced the prospect of fraud. Organizational- The hospital shows the weakness of having little or no linkage between the different departments that deal with accounts and finances ( Mercuri & Neumann 2016). Transactions from the accounts payable department should have been availed to the general accounting desk that is tasked with analysis. Their analysis of monthly revenue and expenditure should have raised a red flag when they notice there was an increase in expenses. The high turn-over at the accounts payable department creates the possibility of an employee committing fraud

Case study 3and leaving the organization. This should have raised a red flag and have been investigated to find the root cause.People- Sharon Harris should not have suggested her son to come and work in the same department as this was against the company regulations. The accounts manager should also not have accepted to hire Harris on the same argument and additionally failed to undertake a background check when she confirmed his employment as being permanent. The accounts payable manager also broke organizational requirements of not interviewing other candidate and hired Harris at her discretion (Van Vugt 2017). There was breach of organizational protocols by the chief financial officer due to sentimental reasons, even after the matter was brought to his attention. Question twoThe first step that needs to be taken by the auditor is to notify the legal counsel department (Bayuk 2009). This department will give advice on how to protect the reputation of the hospital. Further counsel will be given so as to safeguard against lawsuits that may be instituted by the party concerned. The counsel is also important in preparing the charges that may be instituted against the employee who has committed the fraud. In the event that the employee involves their private legal representative, the company counsel will represent it. The employee may also decide to confess and write a confession which needs to be recorded according to the stipulationsset out by the law. The second step is to inform the board and senior management of the hospital. The board and senior management are the ones with authority to take disciplinary action or suspend employees. The manager and her assistant could be asked to go on temporary leave as further investigations are undertaken in the accounts payable department. They are also tasked with authorizing an

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