The company needs to be the victim of the financial fraud committed by (a) dishonest employee(s) that results in personal benefit to the employee(s)

Hello Everyone,

The company needs to be the victim of the financial fraud committed by (a) dishonest employee(s) that results in personal benefit to the employee(s) at a cost to the employer. The employee(s) can be at any level including the top managers such as the CFO and the CEO. Also, the employee(s) could collude with each other and/or with an external party such as suppliers or customers to perpetrate the financial fraud. For example, see Understanding the 3 types of occupational fraud (cpacanada.ca) and AS 2401: Consideration of Fraud in a Financial Statement Audit | PCAOB (pcaobus.org). There are several examples of payroll fraud risks that could happen to any company https://www.ramco.com/blog/payroll/types-of-payroll-fraud-and-methods-to-prevent-it. Though perhaps the likelihood and impact on the payroll frauds vary from one organization to another and from one industry to another. Similarly, there are different types of financial fraud risks related to the theft of company's assets. Provide citations of external research to help you come up with relevant financial fraud risks, identify their impact, and make appropriate and specific recommendations.

You need to clearly state the financial fraud risk for the board so that they can understand the issue that you have identified. Your recommendations to mitigate the financial fraud risks should be based on the six principles of internal control (e.g., segregation of duties) and the best practices of corporate governance (e.g., having independent members with financial expertise to serve on the audit committee). Please email me if you have any questions or concerns. I am here to help you.

Take care!

Sameer

MBAA 536 Accounting 3 - Financial Decision Making-Intersession 2023

Integrated Case Part 2 (18% of Total Grade)

In MBAA 536, we describe how internal control procedures can mitigate the financial fraud risks. For this group project, you are a team of external consultants hired by the board of directors of your approved company in MBAA 536. Prepare an informative business report to the board of directors, approximately 4000 words (excluding Cover Page, Executive Summary, Table of Contents, Appendices, and References). One member of each team is required to submit their report to the Dropbox at VIULearn no later than 11:59PM, Sunday August 13th, 2023. Please do NOT wait until the last minute to attach your file. kindly email me if you have any questions or concerns.

The board would like to develop a risk management plan. They have asked you to identify and prioritize ten financial fraud risks facing the company and suggest how each risk could be managed. You need to clearly contemplate the important items below in your report:

Provide a colourful heat map to visually analyze and compare different sources of financial fraud risks. In assessing risk, two main factors are considered. The first is the likelihood that the risk event will occur and the second is the impact of the risk on the company. Give clear reasons to justify the prioritization of the risks. Provide citations of external research to support your discussions.

You MUST use the three clear headings: Risk, Implications of the risk, and Recommendations to address EACH risk (RIR). The RIR analysis is a method for achieving the required depth in your analysis when you discuss the financial fraud risks. You need to identify EACH risk, explain the implications of EACH risk, and then provide reasonable recommendations to mitigate EACH risk separately.

In your response, state the risk for the board so that they an understand the issue that you have identified. The second step is to analyze the risk that you have identified. That is, provide the implications of the risk. This tells the users why the risk is an issue and helps them to understand its significance. State the negative impacts of the risk that you have identified. Finally, recommend reasonable course of actions to mitigate the risk identified. Tell the users exactly what they should do. For example, consider specific internal control procedures. Provide citations of external research to help you come up with relevant financial fraud risks, identify their impact, and make appropriate and specific recommendations.

Faculty of Management (Business) requires the APA style of referencing for academic papers.Follow the APA formatting in presenting your report such as using an appropriate font size, double-spacing, and titling the tables, figures, and appendices. Please see attached APA PowerPoint slides. Also, resources for using APA are available from the VIU Writing Centre (Library, Room 474). You can find their hours of operation and access toonline student resources(including tutorials and a printable Quick Guide) at: Writing Centre | Vancouver Island University | Canada (viu.ca) https://services.viu.ca/writing-centre.