Winkers The Fraud Triangle Case Study

Mogel’s Incorporated had multiple issues that produced the opportunity for Stefan Winkler to commit the crimes that he carried out. The main issue was the amount of access to Mogel’s assets Winkler had. As a result of this access and know how, Winkler had all opportunities in the world to steal as much as he did. If Mogel Inc. would incorporate a few tactics to strengthen their internal controls they could prevent this type of fraud within their business. Stefan used multiple types of skimming in order to carry out his crimes. The majority include Skimming and lapping of Accounts receivable, which are a result from poor collection procedures and poor supervision from higher management. By applying the basics of Cressey’s study to analyze winkers …show more content…
The first consist of situational pressure, which include personal or work related stressors. Stefan’s pressures included the recent loss of his home, and other financial downfalls. Leg two consists opportunity, involving direct access to assets. In this case Winkler had control over many cash assets, along with extensive know how to cover his tracks for the time being.(Hall, 2013) The last portion of the fraud triangle involves rationalization, or the ethic views of the perpetrator. (Hall, 2013)/(Wells, 2014) Clearly Stefan had a terrible conscience, he made unethical decisions and it cost both Mogel and Winkler. Ten suggestion that could help the Mogel Inc. Include the following:
1) Mogel collection system creates a big issue, which gave Stefan the chance to commit his crime. Because Stefan has access to both area where revenue, he was able to steal from the company. Page 62 in wells text book, explains that by providing extra oversight presence skimming opportunities should decreases would should prevent future criminal …show more content…
(Wells, 2014) Because of his position Winkler had access to multiple different financial statements. By stealing and destroying the documents he made it tough to prosecute. By adding an electronic filing system and backup copies non accessible to anyone other than top management, Mogel Inc. could have avoided this issue, and prevent it from happening again.
9) By adding computer programs that regularly audit the companies statements is another preventive control that could be set in place to detect fraud. Although Computer programs are only as good as the program itself, it still one step that could truly help prevent Winkler’s crime from happening again.
10) Running trend analysis on aging of customer accounts can also be used to detect skimming. (Wells,2014) A rise in the number or size of overdue accounts could be a sign of an employee skimming from the company.(Wells, 2014) By running this program, Mogel Inc. could detect Skimming earlier before it’s too late and employees like Winkler walk off with over 350,000 dollars of their