The Trolley Dodgers was exposed that it had internal control problems existed. The other hand, found that employees embezzlement. The first part of this report identify and explain the characteristics of employee fraud indicated in Dodgers case. such as perpetrator must gains the trust or confidence of the person or company being defrauded. etc And then, the second part is explain the internal control weaknesses and understanding internal control objectives . The third part based on the understanding of the Committee of Sponsoring Organisations 'internal control. Final part is recommendation for Dodgers internal control problems.
Table of Contents
Characteristics of the employee fraud in Trolley Dodgers case3 The internal control weaknesses in the Dodgers` payroll system4 The critical evaluation of the internal control problems in the Dodgers` payroll system5 Recommendation for Dodgers internal control problems7
In this report, I will be divided into four parts. The first part will cover Identify and explain the characteristics of employee fraud .The second part is explain the internal control weaknesses that were evident in the Dodger’ payroll system .the internal control weaknesses include: no independent check and Dodgers don't have separation of duties, etc. The third part is to understanding the Committee of Sponsoring Organisations ' internal control framework to evaluate internal control problems. The COSO's internal control framework have five interrelated components. the five components includes: Control environment ,Control activities, Risk assessment , Information and communication and Monitoring. The final part is recommendation for Dodgers internal control problems.
Characteristics of the employee fraud in Trolley Dodgers case
Employee fraud is an employee within the company to improperly deceptive means to obtain the company's money or other property. Through understand to Romney and Steinbart for the employee fraud has a number of important characteristics. However, the analysis and interpretation in this case related to employee fraud Characteristics.
One basic characteristics of employee fraud is perpetrator must gains the trust or confidence of the person or company being defrauded. In the case mentioned Edward Campos is operations payroll Chief. He is longtime working for the Dodgers . He was known not only for his work ethic but also for his loyalty to the club .However, His boss think Campos was on vacation ,He will came back to company and did the payroll. Dodgers Trusted him. The facts have proved that perpetrators has gained the trust of the company , His behavior is consistent with employee fraud of characteristics . Many employee fraud cases are the characteristics of perpetrators and employers to establish a good relationship of trust. Other case about Bess is cashier supervisor at the campus student health services(SHS)。she is trusted employee。she was able to commit this fraud undetected for nearly 13 years。why? But the answer is simply: Because don’t anyone suspected the SHS cashier supervisor because she was a trusted, well-liked employee. “Fraud research finds that most members of the general public fit the profile of the typical fraud perpetrator”(Peterson and Gibson 2003).But Dodgers’ case and Bess case similar, so to meet this characteristics of employee fraud. The fraud perpetrators use false or misleading information to obtain asset or money is the fundamental elements of employee fraud. This element is required no use other violent offenders, Other employee fraud is they the hide their tracks by falsifying records or other information (Romney and Steinbart 2009). Because he false wage income of workers, He registered about $ 2000 weekly wage employees. However, the real wages of workers earning $ 7 per hour. His salary more than 55% false. On the other hand, He completely controlled the payroll...