Week 3 Disc ACC578

The complexity of financial transactions and the edits of accounts have contributed to widespread concern among certified internal auditors (CIA). Changes to accounts need to be approved and verified before and not after. Continual edits will compromise the integrity of a company’s financial accounting system.
Due to the lack of fraud detection controls in Frank’s Tool Shop, the company may be facing bankruptcy. As the head of the internal audit department, you are preparing to train and inform company management of a needed loss prevention program in the area of cash receipts.  
Using the Internet, the Strayer Library, and/or the Institute of Certified Internal Auditors website, research two articles about the cash control and audit process.

Describe the process to audit cash receipts and disbursements.
Discuss three potential areas for fraud in the cash receipts and disbursements process. Support your plan with examples and provide a rationale.
Post at least 2 replies to your classmates.


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