Essay about Case Study 1 Fraud

1152 Words Jun 24th, 2012 5 Pages
Case Study1: And the Fraud Continues

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud
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I am in Management at my current company and the internal controls are in place. I work and lead as a proactive person. I never thought of it this way until I took Law, Ethics, Corporate Governance, Financial Management and Forensic class; as I apply these to my current job it makes more sense. What I can say that I will be more attentive to prevent, deter and detect fraud rather than being reactive and waiting for fraud to occur. Based on this case Pavlo was an unethical employee in his position at MCI. I am not in agreement with Pavlo’s as he is trying to use the environment and the circumstances that caused his actions. Pavlo’s had a Management position in his organization; no matter how much control he had still did not give him the right to take from the company. He knew he was doing wrong for hiding money and did what it took to cover all of the inconsistencies on the accounting records. He was found guilty because it was evidenced that prove he stole money. To me its just like break and entering he took something from people… their peace of mind and confidence they had in him. “It doesn’t matter if the organization is large or small or what country or industry the organization is in.. As long as humans are involved in organizations, the risk of fraud us real” http://www.prgx.com/analytics/fraud-analytics. No company is perfect but they put certain people why they think are committed to the policies but

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