1.The risk of fraud is great in the local doughnut shop in Chapter 5, Case 1, page 161, or so it seems!

• What is your opinion?
• Do you see any symptoms of fraud here?
• If this were your doughnut shop, what would you do when you spotted these symptoms of fraud?

• Please comment on Meridith Christoforakis reply (2 to 4 Sentences Be constructive not offence)

Symptoms of Fraud:

1.  Cal works by himself.  He can’t get anyone to cover his shift, so he doesn’t take vacation or sick days.

2.  Glazed donuts have been repeatedly “thrown away” on Cal’s shift.

3.  Cal is irritable, yelling at co-workers.

4.  Cal recently made an extravagant purchase – a new luxury car.

My role as manager:

1.  Everyone needs a day off.  I would quickly insure that I had someone trained to cover Cal’s shift at least twice a month.

2.  If possible, I would hire a person to work with Cal – even 1/2 of Cal’s shift, as someone would be there for company, to split the work tasks, and to minimize the opportunity for fraud.

3.  I would talk to Cal about the lost donuts – explain that I would need a report written every time it occurs, and that excessive “lost” batches would require further disciplinary action.
The risk of fraud
4.  If we were at the point where the expensive car was now a reality, I would move Cal to the day shift, hire someone else for the night shift, and perform a full audit on the night shift for the previous 3 months.

• Please comment on Imtiaz Patel reply (2 to 4 Sentences Be constructive not offence)

The risk of fraud is great in the local doughnut shop in Chapter 5, Case 1, page 161, or so it seems! What is your opinion? Do you see any symptoms of fraud here? If this were your doughnut shop, what would you do when you spotted these symptoms of fraud?

1. What areas of the business are most at risk for fraud? The business areas which are most risk for fraud are the batch of money Cal deposits every morning and the batch of doughnuts thrown area because of overcooking.
2. Identify any symptoms of fraud that appear to exist at the doughnut shop? The symptoms of would be no one is will to work Cal shift and frustration from Cal which give him opportunity to committed fraud.
3. What steps could be taken to reduce opportunities for fraud? The first step I would take is do implement dual control which depositing the batch meaning have Cal count the money in front of another employee and have him show the receipt of daily deposit to the owner Kenny.
4. If this were your doughnut shop, what would you do when you spotted these symptoms of fraud? If this was my doughnut shop the first step I would take is to give Cal off one night shift and convince another employee to work his shift, to detect any fraud. Another step I would take is monitor the security cameras while Cal is working to ensure everything is done properly, and do analytical produces audit to ensure not fraud is occurring, meaning have the every manger count the cash and doughnuts on their starting shift and ending shift to ensure no fraud is occurring by management.

The risk of fraud

2. The Institute of Internal Auditors (IIA) has taken many proactive steps to educate professionals on how to detect fraud.

• What is the IIA all about?
• How is it going to help us detect fraud?

• Please comment on Jessica Alvarez reply (2 to 4 Sentences Be constructive not offence)

The IIA was created to bring internal auditors together globally. This platform provides continued education programs, best practices, authoritative guidance, research opportunities, promotion of the value of the profession, etc. By helping further develop professionals the IIA helps detect fraud and reduce its likelihood.

https://na.theiia.org/about-us/Pages/About-The-Institute-of-Internal-Auditors.aspx

• Please comment on Dina Wagner reply (2 to 4 Sentences Be constructive not offence)

The IIA is an organization the brings together those that are in internal auditing, risk management, governance and other like fields.
“The mission of The Institute of Internal Auditors is to provide dynamic leadership for the global profession of internal auditing.”
They will help in detecting fraud my continually educating on the current issues and trends and by bring professionals from around the globe together to discuss and share experiences.
https://na.theiia.org/Pages/IIAHome.aspx

The risk of fraud