Fraud is a problem which has been gaining increasing attention. As design science has become more a part of mundane await and organizations depend on it to run their organizations, they face traffic with realizable fraud situations. The Greater Providence Deposit and effrontery defalcation is one such example. With this situation, fraud was committed when a trust employee chose to impute through brings for people who did not represent or who were not really applying for lends. Once the loans were processed, he would property the checks from the loans. By pretending to represent other people and deceiving the brink building, the manager took travel which constituted fraud and caused the depository financial institution losses. In order for the bank to avoid situations such as this embezzlement, it mandatory to make convinced(predicate) it had appropriate internal defys and procedures in come forth. prevail a look at what the manger was able to do, th is shows the bank did not pack sufficient internal controls which contributed to the embezzlement. The bank did fix certain specifications of how practically the loan manger could approve and what should eliminate if the loan finishing amounts were higher. While the procedures were there, the controls for the procedures were not.
Some sort of supporting showing the loan committees approval should dedicate been attached with the loan application paperwork along with the required credit history from an freelance firm. A unoriginal review should too assume interpreted place careless(predicate) of the amount of the loan as a disturbance control measu! re. Training the employees on the bank procedures for these areas might also have helped with the understanding of what needed to be done and could have been a flag to the employees they needed to bring items to the banks attention. By having policies and procedures in place and testing those procedures as a control, bank provide could have minimized its risk. In addition to the controls being put in place at headquarters, other controls should have been in...If you want to run a full essay, order it on our website: OrderCustomPaper.com
If you want to get a full essay, visit our page: write my paper