Southern New Hampshire University
Module One Homework
Find an article online that addresses fraud within a company (for example: "Bookkeeper caught embezzling from local plumbing company"). Respond to the following questions. Please answer in paragraph format in one to two pages. Include a link to the article at the end of the paper.
1. What items on the balance sheet were affected by this fraud? The profit and assets items were affected by the fraud committed. i
2. Based on the seven elements of internal control from the lecture, discuss what controls might have been missing. Several elements were missing for this mistake to happen. Physical audits trial balances could have been very effective in showing these fraudulent numbers earlier on.
3. What steps could have been taken to prevent the fraud that was perpetrated? Completing each of the seven elements would ensure that companies are fraudulent free and there is no mistakes in the finances.
https://www.bloomberg.com/news/articles/2021fi10fi18/germanficriminalfichargesfioverfi steinhoffiallowedfitofigofitofitrial.