AC 465 help A Guide to career/Snaptutorial AC 465 help A Guide to career/Snaptutorial | Page 3

What is the role of research in the fraud examination and financial forensics
professions?
3-2
Compare and contrast Cressey’s and Albrecht’s theories of crime causation.
3-6
Explain the relationship between an employee’s position and the level of theft
(according to Hollinger and Clark’s research).
3-8
Describe corporate governance breakdowns in the facilitation of Enron’s fraudulent
acts.
3-9
Identify ethical issues, conflicts of interest, and noncompliance with corporate
policies and procedures in the Enron case.
Part 2:
Short Case: Respond to the questions asked at the conclusion of the following case:
Sarah Ferguson worked for Hawks Consulting Group (HCG) as the executive
secretary in the administrative department for nearly 10 years. Her apparent integrity
and dedication to her work earned her a reputation as an outstanding employee and
resulted in increased responsibilities. Her present responsibilities include making
arrangements for outside feasibility studies, maintaining client files, working with
outside marketing consultants, initiating the payment processes, and notifying the
accounting department of all openings or closings of vendor accounts.
During Sarah’s first five years of employment, HCG subcontracted all of its feasibility
and marketing studies through Cambridge and Company. This relationship was
subsequently terminated because Cambridge and Company merged with a larger,
more expensive consulting group. At the time of termination, Sarah and her
supervisor were forced to select a new firm to conduct HCG’s market research.
However, Sarah never informed the accounting department that the Cambridge and
Company account had been closed. Because her supervisor allowed Sarah to sign
the payment voucher for services rendered, Sarah was able to continue to process
checks made payable to Cambridge’s account. Because her supervisor completely
trusted her, he allowed her to sign for all voucher payments less than $10,000. The
accounting department continued to process the payments, and Sarah would take
responsibility for distributing the payments. Sarah opened a bank account in a
nearby city under the name of Cambridge and Company, where she would make the
deposit. She paid all of her personal expenses out of this account.
Assume that you have been hired by Hawks Consulting Group to help detect and
prevent fraud.
What internal controls are missing in Sarah’s company?
What opportunities gave Sarah the opportunity to perpetrate the fraud?
How could this fraud have been detected?
======================================================================
AC 465 Unit 3 Assignment Exercises