Stephanie Baskill

STEPHANIE BASKILL (Internal Control and Fraud)

an unemployed accoun!n" cle$ %&o l!'e( one )loc$ *om Clea'e +anu*acu!n" Company, S&e "a!ned an une(!ce acce(( o &e (a!d &e company &ou"& &e ERP manual( (& *ound !n &e dump(e( &a %ee daed  mon&( p!o, GAÑA-SIB

TUAÑO

Control Structure Weaknesses #$ Control o%er output docu&ents

ERP manual( %ee d!(caded !n a manne &a &ey can (!ll )e e!e'ed, Specic Control Tec!ni"ues and Procedures a, Store t!e docu&ents in a sa'e place in t!e co&pans pre&ises *!ile still rele%ant

-.!& &!(/ &e oupu documen( o* &e company %on0 )e ea(!ly acce((ed and ead )y anyone e(pec!ally )y ou(!de(, ), S!reddin+ or incineratin+ o' docu&ents ,e'ore discardin+ t!e&

-1no%!n" &a documen( o* &e company ae '!al o &e company0( (ucce((/ &ey (&ould )e "!'en pope poec!on e'en %&en d!(cad!n" &em *om &e company, In &!( %ay/ e'en !* &e documen( %ould )e ou o* &e company0(

Control Structure Weaknesses

,

Inade"uate pre%ention operatin+ sste&

controls

re+ardin+

t!e

-Sep&an!e Ba($!ll %a( a)le o o)a!n acce(( o* &e company0( 2le( &ou"& &e appl!ca!on o* &e Toan &o(e ec&n!4ue, Specic Control Tec!ni"ues and Procedures

c, Pre%ention controls in t!e operatin+ sste& -T&e company mu( e4u!p !( compue (y(em %!& a 2e%all and an!'!u( (o*%ae po"am( o educe/ !* no oally el!m!nae/ !($( o* 2le( )e!n" acce((ed o e'en de(oyed and couped, T&e(e ae (ome %ay( o* pe'en!n" &e compue (y(em( o )e !n*eced )y mal!c!ou( and de(uc!'e po"am(,

Control Structure Weaknesses

3, Inade"uate detection controls re+ardin+ t!e operatin+ sste&

-T&e company %a( no a)le o deec !"& a%ay &e *aud made )y Sep&an!e &a made ! lo(e/ on a'ea"e/ 56/777 dolla( a mon&, I %a( only deeced a*e 58 mon&(/ %&!c& !( a 'ey lon" !me Control *o &e company noand o ma$e a mo'e, Specic Tec!ni"ues Procedures d, -etection controls in t!e operatin+ sste& --T&ee mu( )e a pe(onnel o* &e company &a !( a((!"ned o* e'!e%!n" &e ade4uacy o* &e opea!n" (y(em, A*e deec!n" &ea( o de(uc!'e po"am( !n &e opea!n" (y(em(/ appop!ae ac!on( mu( )e undea$en a( (oon a( po((!)le,

Control Structure Weaknesses

9, Inade"uate re%ie* o' transactions and co&pans records

-C&an"e( !n &e an(ac!on lo"( made )y Sep&an!e %ee no no!ced, T&!( !( e!&e )ecau(e/ mana"emen epo( %ee no popelySpecic e'!e%ed o c&an"e( %ee no e:eced and Control Tec!ni"ues andpopely Procedures ecoded, e, Proper and 're"uent re%ie* s!ould ,e conducted -+ana"emen (&ould popely and cae*ully e'!e% any c&an"e( o add!!on( o 'endo( o (uppl!e(0 l!( &a %ee e:eced *o accuacy, *, .essa+e Se"uence Nu&,erin+ and .essa+e Transaction Lo+ &ust ,e i&ple&ented

/ EN- /

GAÑA-SIBUG-TUAÑO