Internal audit

Debtor Beware: Debt Collectors Find Their Silver Bullet Clifford Cain Jr. discovered that a debt collection company had garnished his bank account and taken around $4500 to cover an old debt they said he owed. Cain said that he did not even know that he had been sued until he found out that the money was gone from his account. Midland Funding is part of Encore Capital Group, a gigantic debt collection agency. They did not just go after Cain, but many other residents of Baltimore with the…

I recently was having issues with my cellular phone service carrier Verizon. They were charging me for my equipment when I wasn’t supposed to be charged. I called into customer service several times to express my concerns, and was told each time that a trouble ticket would be put in concerning the issue. However, the problem was not rectified and I was still going to be charge for my equipment when this shouldn’t be the case. So finally I decided to take a different approach and instead of…

An evidence-based decision making process may have very well resulted in a different outcome of the Deepwater Horizon tragedy that we know today. An evidence-based decision making process would have allowed the situation to be accessed by all parties. It also would have allowed them to come together before the decision was made. However, this is not what occurred in BP and Transocean’s decision. Despite there was data available, they did not understand the data and ultimately made the…

CCI 4200.62 A. The Primary objectives of the PPMAP are to ensure compliance with applicable procurement policy and processes; determines the effectiveness of existing procurement processes; develop ways to improve effectiveness and responsiveness; identify any potential statutory or regulatory issues posed by current procurement practices; and identify innovative procurement procedures and strategies. (D.1.22, pg.3, para 4., green-highlight) B. The Procurement Performance Management…

The courts acquitted the organization of the corporate manslaughter charges as the truck driver was carrying on his own initiative and was not adhering to the training course techniques. Nevertheless the company was convicted and fined under section 2 (1) of the health and safety at Work Act 1974 which states that an employer is responsible for health and safety of his employees during the course of their employment. Furthermore in addition to that, in the case of MNS mining limited a company…

Have you ever been hacked? Not in the “Haha I took a funny picture on your account hacked,” but the scary moment when you realize your passwords have been changed and you can’t access your bank account anymore? If you haven’t, count yourself lucky, because Security Researchers state that almost half of the population of the United States has been hacked, or have had their private information leaked to the web. Many times you don’t even know it’s happened. Companies don’t like sharing information…

The auditors could have detected this embezzlement and fraud by performing additional audit procedures for cash and inventory. With respect to cash-skimming scheme, the auditor could investigate further on the “Office” line item of certain cash report sheets by inquiring the company’s personnel and the management. Similarly, the auditor could also use analytical procedures to gain an overall assessment of sales and profitability across individual stores. Because the cash receipt was taken into…

for Coopers, this was not hard to attain. These employees knew the audit planning strategies that would be implemented. Coopers historically did not perform audit testing of zero balance accounts, this would mean the “bucket-account” used to hide personal expenses would not be reviewed by the auditors. Coopers also gave Phar-Mor advanced knowledge of the stores where they would observe physical inventory counts for the annual audit. This lead to increase fictitious inventory levels at stores…

Introduction Audit committees have an important role to play in order to uphold both perceived and actual independence of the external audit process and this role will continue to evolve going forward (Cohen, Krishnamoorthy & Wright, 2002a). KPMG's Audit Committee Institute (2003) states: “Today, as never before, the role, responsibility, and accountability of the audit committee continue to be the focus of lawmakers, regulators, and shareholders. The audit committee's role in overseeing a…

Martinez Fraud Auditing May 1, 2016 Fraud Audit Program: Hollate Assess: Fraud: Type/Scheme Control Opportunity Occurs/Fraud Scenario Concealment Red Flags Conversion Journal Entry Scheme The scheme likely occurred due to management override of controls. Strengthen controls to discourage management override may prevent this from happening again. CFO is creating journal entries to increase company inventories and decrease costs of goods sold. Internal audit team was required to meet…