saint ACC505 Midterm Exam Essay Questions
Query 1. (12 factors) A Tooele Faculty District worker has been charged with theft and forgery for allegedly stealing roughly $32,000 in district funds. Mary Blauser, 51, was charged in third District Courtroom Wednesday with one depend of second-degree felony theft and 5 counts of third-degree felony forgery. She is scheduled to make an preliminary court docket look December 16, earlier than third District Courtroom Decide David Younger. She is the second faculty district worker to be formally charged with stealing from the district. Each people have been charged in separate and apparently unrelated instances. Blauser, who was the district’s payroll clerk, allegedly organized digital direct deposits of funds for nonexistent staff; the funds then went to her, in keeping with Tooele Police detective Todd Hewitt. "Over the course of the final 15 months, she was capable of allegedly siphon funds out of their [the district’s] account into her account, and he or she allegedly arrange fictitious staff." Hewitt stated. "We have been capable of affirm 31 counts of forgery and second-degree theft." Hewitt stated faculty district officers turned suspicious when that they had bother balancing the district’s account. After an inside audit, faculty officers got here throughout payroll listings for employees that didn't have any matching Social Safety numbers. District officers then turned to police for assist. Tooele Faculty Superintendent Larry Schumway stated Blauser has been launched from her job for malfeasance. One other faculty district worker, Cindy Heap, who previously labored as an elementary faculty secretary, earlier was charged with one depend of second-degree felony theft and 11 counts of forgery in a special case, in keeping with Gary Searle, deputy county legal professional. Heap allegedly took simply underneath $80,000 in district funds, Searle stated. Heap, 32, who resigned from her job, is scheduled for a court docket look on December 9, earlier than JudgeYoung. A. What components do you suppose allowed these frauds to happen?A. What do you suppose the varsity district ought to do to stop fraud from occurring sooner or later?A. What do you suppose the varsity district did proper in these conditions?Query 2. (12 factors) In recent times, id theft has been a standard fraud towards shoppers. Determine and clarify three strategies fraudsters use to transform private data to monetary acquire, as a part of id theft schemes.Query three. (12 factors) In the course of the previous yr, Jim Hunt, CEO of KMP Company, examine a number of totally different frauds occurring in his trade. Jim want to know if fraud is current in his firm. He has requested you, his new assistant, to assist him decide whether or not or not fraud is happening. In preparation for the investigation, Jim has requested you to create a listing of fraud signs and focus on how they will help decide the place fraud could also be going down.Query four. (12 factors) Listing three alternatives to commit fraud which have arisen from the increase in e-commerce.Query 5. (12 factors)Jim was simply employed at Beehive credit score union. Beehive was identified for its impeccable controls and pleasant staff. Jim was employed on as a teller and assumed his new job would assist him obtain a mortgage mortgage to purchase a home, regardless that he had poor credit score. With out the mortgage, Jim wouldn't be capable of buy the home, and he, his spouse, and their six youngsters could be pressured to remain within the two bed room residence that had change into the fixed argument of his marriage. Moreover his marriage being on the road, Jim was sick and uninterested in listening to the children’s nightly combat about which three needed to sleep on the ground and which three obtained the mattress. Jim was decided to maintain his marriage and children collectively.Jim had give up his job in building and accepted a lower-paying job as a teller, anticipating to obtain the much-needed mortgage. Nevertheless, after reviewing the paperwork for Jim’s mortgage, the impeccable controls have been applied, and Jim’s mortgage was not accepted by all of the mortgage committee. All the pieces was falling aside, and Jim didn't know what to do.Two weeks into his job, Jim discovered that two aged women got here round to gather and account for the money each Thursday night time. The remainder of the week two youthful gents made the rounds. He knew the pairs made the collections collectively; however, he determined to check a easy plan to "approve his mortgage." He figured the women wouldn't precisely depend the cash, and in the event that they did, he might simply cowl for that day. On the next Thursday, earlier than Jim closed his until, he took out round $200. Though they have been gathering and counting collectively, the aged women didn't uncover the scarcity. He was proper: the outdated grannies have been unable to precisely depend the funds and he might simply acquire his “mortgage.” Slowly however absolutely, Jim began taking extra money. At first, he determined he would take simply sufficient to buy the home, after which he would begin saving to repay the financial institution. Later, he figured if the financial institution is silly sufficient to rent two aged women to do their work, then they deserved to lose the cash. A. Are all the parts of the fraud triangle current within the case? Which parts of the triangle are current and how are they current?A. What might the financial institution have carried out to stop the fraud?Query 6. (21 factors) Justin Richards was simply employed because the retailer supervisor for Tremendous Electronics, a small chain of electronics shops positioned within the western United States. Richards not too long ago moved to Fremont, California and was excited to begin a brand new profession within the Bay Space. He knew little in regards to the scenario that he was employed into, besides that he had been advised there appeared to be lots of theft in his retailer. Richards had been employed by means of a headhunter good friend of his, who talked about that he had helped rent him attributable to his expertise cleansing up fraud at his final firm. Richards went considerably hesitantly into his first day of labor. He was advised by his new boss that he wanted to wash up the theft that was happening. This made Richards very suspicious of everybody that he met and as he toured the shop and was launched to his staff, he felt like he was attempting to learn everyone’s soul to find out in the event that they have been a part of the issue. Richards’ boss gave him little data as to what was happening, so Richards started his personal investigation. He needed to stability that effort together with his regular job features, and he felt that he couldn't at all times spend the time he want to, attempting to catch the perpetrators. Nevertheless, after months of investigation and examine of enterprise practices, he felt he had a reasonably good grasp of the scenario. It stunned Richards to search out out that the objects that have been being stolen weren't small objects, similar to moveable CD and cassette gamers, as he initially suspected. Relatively, it was massive objects, similar to televisions and stereos. So far as he might decide, the shop was dropping over $5,000 every week from the theft of those massive objects. As Richards was researching the scenario, a couple of issues jumped out at him and pointed him in the best route. He observed that his warehouse staff tended to be highschool college students and that that they had complained so much within the previous about how little they made. Their personnel information indicated that that they had repeatedly requested for raises and advances. In the course of the time that Richards had been there, he had heard nothing about needing extra money from any of them. He additionally observed that these staff appeared to decorate very nicely and had good vehicles, for highschool college students. He obtained the sensation that they have been dwelling past their means. As he started watching these warehouse staff extra carefully, he observed that they tended to hang around with the staff that labored within the tv and stereo division. This made him much more curious. After a couple of months of investigation, Richards felt he had decided what was going on. As clients made selections to buy objects from the tv and stereo departments, an worker would fill out a requisition type for the merchandise. The worker would take the shape and have it accepted by his superior. The worker would then stroll the shape over to the warehouse, which was positioned in a separate constructing on the opposite facet of the parking zone. As the worker walked over to the warehouse, he would alter the shape. The worker would sometimes erase the portion that indicated the amount. For instance, he would erase the amount of 1 tv, and alter it two televisions on the requisition. On his strategy to the warehouse, he would additionally name up one in every of his pals and inform them to come back and get the opposite tv. After he picked up the objects from the warehouse, he would load the customer’s merchandise in their automobile. Earlier than returning to work, the worker would then take the stolen tv out to his friend’s automobile. The warehouse staff would assist prepare this fraud, making it tougher to detect by means of their very own paper work. As Richards seemed deeper into the matter, he was capable of decide that the fraud was solely perpetrated when a specific group of highschool college students was working on the similar time. He was undecided how lengthy the fraud had been happening, however he did discover that about six months earlier than he started working at Tremendous Electronics, these people stopped complaining about their pay or asking for advances. So far as Richards might inform, that they had stolen roughly $120,000 price of merchandise. When Richards seemed into the background of these people, he discovered that the salespeople he suspected had been employed on the advice of the warehouse staff. He additionally discovered that all the suspects had been caught shoplifting collectively a couple of instances up to now. 1. How might this fraud have been detected?1. What inside controls are lacking at Tremendous Electronics? Query 7. (12 factors) A good friend you haven't seen for years has simply contacted you regarding a potential fraud in his firm. Your good friend remembers you taking a fraud examination course throughout school and he would really like your assist. Your good friend suspects that the controller is skimming a number of the money that's coming in from buyer funds. Since your friend’s firm is kind of small, there are few controls requiring segregation of duties. Though your good friend has a really optimistic relationship with this controller, your good friend want to know the very best sample of strategies to assist see if this controller is actually stealing the money. Put together a "goal" diagram displaying the listing of steps your good friend ought to observe. .gif" alt="Goal diagram">Query eight. (21 factors)Kristynn Graham, a lady from Garbage can Metropolis, Alabama, was a procuring addict and had run up appreciable debt on extreme purchases of knickknack and garments. She would additionally slap down plastic on the grocery retailer, to take her youngsters to miniature golf, and go bowling along with her husband. Christmas purchases have been just a little larger, with presents like $100 remote-control vehicles for her sons. She made $11 an hour at Durban, and her husband earned just a little bit extra as a machinist at an plane firm. Household funds have been a relentless balancing act. Now she wanted a strategy to keep away from telling her husband in regards to the dependancy.Kristynn turned to her employer, Durban Consulting. She raised cash to pay down her obligations by repeatedly padding the company’s expense accounts. She took reimbursements for journeys and conferences she didn't attend. In her three years of labor, she had collected a complete of $240,000 from her employer. It obtained to the level the place she didn't really feel like she was doing something incorrect. When Durban discovered, Graham admitted the fraud and pled responsible to at least one depend of fraud and stated that she was planning to pay it again.Necessities a. What sort of fraud did Kristynn Graham commit?a. What's the different title for this kind of fraud?c. Listing any 4 components/weaknesses that would have resulted on this sort of fraud. c. What might be carried out to keep away from or cut back this type of fraud in an organization? What segregation of duties might have been in place to stop Kristynn from committing this fraud? (Listing 4 efficient methods.)c. It's stated that this type of fraud doesn't end in as a lot loss as fraud dedicated by administration or high executives. Why do you suppose that is so?c. Title the three elements of the fraud triangle and describe how each existed within the situation.