Turn in fraudsters, police tell businesses

Summary

Here in the article, it shows that even though there are internal frauds within a business, they don’t report it. Businesses think it’s too much work just reporting in the frauds. If they don’t report it in, it will just reoccur again at another place. Police are warning businesses and hope that the companies will cooperate and report in frauds, or else they won’t be able to stop it. One of the cases within the article deals with a 40 year old woman who cheated at least $300,000 out of her company where she was employed as a manager.

Connection

This relates to Chapter 14 in a way since this chapter does talk about internal controls to prevent fraud. Since the businesses had poor internal control, it gave chances for employees to scam the companies. As stated in the textbook, a good way to internal control is to have two different people to process the work independently, and the work has to agree in the end. Another way is to keep all the assets in a safe place so only authorized people can reach it. Also, it is important for the responsibilities to be clearly established so if anything goes wrong; we can pinpoint who was responsible.

Reflection

I think it is really foolish and silly for the businesses to not report the internal frauds that they have. If a store got robbed, they would immediately call 911, but internal businesses deal with even larger amount of cash stolen, and yet they don’t call 911. Yes, it might be time consuming to file the reports in to the police but then in the end, it could help prevent more similar cases to happen. If the businesses just let things go, they are just letting their own money flow away. Seriously, businesses should spend more time on their internal control and look closely at their cash control.


http://www.canada.com/story.html?id=1023575