2 . Good internal controls require that the custody , recording , and authorization functions be separated . Explain which of those functions Guisti had and how the failure to segregate them facilitated the fraud .
3 . Identify the preventive , detective , and corrective controls at GPD & T , and discuss whether they were effective .
4 . Explain the pressures , opportunities , and rationalizations that were present in the Guisti fraud .
5 . Discuss how Greater Providence Deposit & Trust might improve its control procedures over the disbursement of loan funds to minimize the risk of this type of fraud . In what way does this case indicate a lack of proper segregation of duties ?
6 . Discuss how Greater Providence might improve its loan review procedures at bank headquarters to minimize its fraud risk . Was it a good idea to rotate the assignments of loan review clerks ? Why or why not ?
7 . Discuss whether Greater Providence ’ s auditors should have been able to detect this fraud .