ipl-logo

How Fraud Is Committed By The Board Of Directors And Cynthia Cooper

1238 Words5 Pages

Hypothesis Development

Investigation Planning

Fraud Investigation Process

The process for investigating potential fraud includes: the initial case analysis, planning and preparation, fact finding, analyzing and reporting the evidence, and following-up. Before starting the WorldCom investigation, I need to know what the alleged crime is, who the perpetrators are, and if an investigation is necessary. Cynthia Cooper believes that fraud is being committed by more than one perpetrator, so an investigation is needed. Since the SEC is involved, I am seeking assistance from outside counsel. After completing the initial analysis, I need to plan my investigation. Since a majority of the decision-makers are being investigated, I am going to keep matters with the Board of Directors and Cynthia Cooper through weekly meetings. During my first meeting with Cynthia Cooper, I will develop an investigation plan that enables me to assess …show more content…

Internal controls also act as a catalyst against fraud risks when applied properly. The types of internal controls are: separation of duties, access controls, physical audits, documentation, trial balances, reconciliations, and approval authority. However, WorldCom’s lack of internal controls is less than to be desired. I need to complete a fraud risk assessment to assess possible exploitations. Therefore, I need to identify the inherent fraud risk, assess the likelihood and significance of the inherent fraud risk, and respond to the reasonably, likely, and significant inherent fraud risks. A risk assessment team will be assembled to identify the inherent risks. For example, documentation enables WorldCom to maintain proper recordkeeping. However, there are transactions not supported by source documents (Managing the Business Risk of Fraud: A Practical Guide 2008) (Ingram

Show More
Related
499 Words | 2 Pages

Investigation:

Read More
649 Words | 3 Pages

It also identifies the complainant’s goals. “The effectiveness of every fraud investigator, in pursuing either criminal or civil fraud investigations, is ultimately judged by how closely—and consistently—she reaches or exceeds her investigative goals.” Once the goals and expectation are clearly identified, then the investigation phase started. Under the investigation phase the data is being collected for the results to be achieved.

Read More
1532 Words | 7 Pages

An example of fraud for Rivian, “A federal judge said Rivian Automotive must face a lawsuit claiming it defrauded shareholders during and after its blockbuster 2021 initial public offering by concealing that it had underpriced its electric vehicles, leading to unpopular price hikes.” (Stempel). In an instance of fraud occurring at Rivian that displays weaknesses in internal controls, the company should have detected these mistakes. Although the company has spoken about the issue and stated that they are actively trying to improve their internal control system, the legal implications constitute great damage to our auditors. Given Rivian's history of losses, the company and its top management may be under significant pressure from investors or current stockholders.

Read More
263 Words | 2 Pages

I am filing a complaint against United Bank, 129 Main Street Beckley, WV 25802. Former United Bank Vice President MIchael Farris, and a senior United Bank official at United Bank 's Parkersburg branch, engineered a fraud-for-profit at the Beckley branch. Mr. Farris, and other United Bank employees perpetrated the criminal enterprise via HELOC 's. United Bank continued Beckley 's criminal enterprise, after Judge Irene Burger, sentenced, United Bank Vice President Roy L. Cooper, to a five-year prison sentence. Mr. Cooper 's charges included aiding and abetting mortgage fraud, On December 28, 2007, Former United Bank Vice President Michael Farris attached coterminous mortgages on real estate I litigated--since June 2004.

Read More
1649 Words | 7 Pages

The Corinthian Colleges Debacle: Holding For Profit Colleges Accountable The Corinthian Colleges Debacle unveiled many areas of non-compliance, not only by the for profit private postsecondary education institutions, but also by the control agencies at the state and federal level. The closure of the Corinthian Colleges revealed the inefficiency of the states to provide oversight and enforcement to mandate compliance based on their authority as outlined in existing state laws. The Corinthian Colleges is just one of many for profit private postsecondary education institutions that have faced or will be facing closures. We’ll provide background on what happened that lead to the closures, the impact this has had on student loans, and what factors have

Read More
1577 Words | 7 Pages

In this the investors claim that the company executives encourages the sales staff to report fraudulent earning from fake transactions. Evidence of the fraud, the investors claim, would be found in the emails and the corresponding attachments between sales, sales managers, and accounting. The emails sent between these people would fall under what Bills knows is relevant in the action or at least reasonably likely to be requested during

Read More
533 Words | 3 Pages

It is important for the organisations to learn from their own performance to monitor and review processes. The organisation should try to reduce the risks wherever possible. They should create an environment in which open and honest communication about the adverse events is encouraged. Responsibilities of

Read More
736 Words | 3 Pages

Wilson had the access to everything in the accounting and financial system except for signing checks (Katz, 2013). Moreover, Wilson had the opportunity to forged signatures, paid her credit card with company checks, and reconciled the bank accounts (Yager, 2016). In this matter, Wilson had no supervision over her and employer’s trust gave her the opportunity to embezzled company’s funds. The company’s weak internal controls lead her to commit fraud repeatedly without being caught.

Read More
902 Words | 4 Pages

If there would be more checks and balances and segregation of duties, then the fraud has been prevented. In addition, if WorldCom have independent auditor then it would have also prevent fraud. 4. Which one person

Read More
1692 Words | 7 Pages

This is particularly important for risk management, legal discovery, and compliance (Rouse). Even though TJX was not in compliance with Payment Card Industry Data Security Standard (PCI DSS) (Appendix 2) for some reason the company was able to pass the annual audit for that standard. The fact that TJX was able to pass the PCI DSS audit without the required standards of security show that something was not operating in the way it was supposed to. Moreover, TJX’s internal audit department was not able to comply with its function, which led to a complete failure in the auditing

Read More
1491 Words | 6 Pages

The fraud triangle is made up by three distinguished elements. These elements in the fraud triangle consist of pressure, opportunity, and rationalization. The overall representation of the fraud triangle can be seen as the specific model to spot any type of high-risk unethical and fraudulent performances being conducted by a company, in this case Cendant Corporation. Cedant Corporations actions can be analyzed by the fraud triangle by the way that their senior management/top management decisions fell into the three categories of pressure, rationalization, and opportunity. Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image.

Read More
913 Words | 4 Pages

For operational purposes, the company collects and stores confidential information about their customers, employees, suppliers, and vendors. For purposes of their rewards program, the company collects sensitive and confidential consumer information. Although security measures and information technology systems have been put in place to ensure secure transmission and storage of confidential information, security breaches, computer viruses, or even human error can occur. Any of these events could cause data to be lost or stolen, as well as disclosed and used with malicious intent. Such occurrence could lead to litigation, fines, increased security costs, and damage to

Read More
2178 Words | 9 Pages

It shows how the fraud was detected and the accounting practices that were used at the time, how the director

Read More
725 Words | 3 Pages

The law officials should be educated more about fraud and increasing more strict sentences. The law enforcement should make it obligatory to report the fraud. 6- In Miller case, the company should separate financial duties of employees which means that the employee who writes the checks should not be the employee who reconciles the bank statement. The company should have stronger internal

Read More
2107 Words | 9 Pages

This three element fraud is often referred as a fraud triangle by the researchers (Cohen, Ding, Lesage & Stolowy, 2010, p. 276). On the other hand the theory of planned behavior focuses on the intentions behind the planned behavior. Ajzen (1991, p. 188) explains this as “attitude toward the behavior… refers to the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question”. Cohen, Ding, Lesage & Stolowy (2010) have combined the fraud triangle and theory of planned behavior to understand that how the two theories can be collectively studied to find out the reasons behind the unethical activities that results in corporate frauds. Cohen, Ding, Lesage & Stolowy (2010) in their work studied various organizations including WorldCom and identified following: • WorldCom’s management had an excessive interest in maintaining the entity’s stock price and earning trends (p. 287).

Read More

More about How Fraud Is Committed By The Board Of Directors And Cynthia Cooper

Related Topics

Open Document