Paper type: Essay Pages: 3 (535 words)
An investigation of the financial performance and condition of Tallahassee Bean Counters (” TBC”) was performed for the duration Might through September 2013 for the function of showing you any observations or areas that need extra consideration. This analysis was based upon a restricted understanding of business and the control environment. Moreover, a number of the comprehensive screening treatments that normally would be performed as part of a total forensic investigation have actually not been carried out due to my not having complete access to all monetary files and records.
Please contact me need to you decide a more formal examination is called for based upon the findings included in this analysis. Our findings consist of the following:
✓ The general control environment has not been established to prevent, find, or prevent fraudulent activities including financial reporting;
✓ Ghost (fictitious) staff members have been developed and payments have actually been made to these fictitious workers;
✓ Revenues from ticket sales do not agree to supporting documents;
✓ Bank deposit deals are not effectively validated;
✓ Stock goes through misappropriation.
Possible Suspects and Warnings
Based on my review of personnel files, interviews with co-workers, partners or former partners, and previous companies, three individuals – Phil Ackers, Ben Hill, and Terri Hughes – have been determined as possible culprits of deceptive activity. Below are the crucial factors that caused this decision.
Phil Ackers: As president of TBC, Mr. Ackers should be responsible for establishing the overall control environment of the organization. The “tone at the top” is one of the most critical factors to ensure that fraudulent activity is either prevented, detected, or deterred. However, there are no formal procedures whereby employees can report known or suspected fraudulent activity. Second, Mr. Ackers supposedly provided Ms. Hughes with bonuses in sufficient quantity to purchase in cash a beach house in the Florida Keys. Although that purchase was made 12 years ago, there is heightened concern of Mr. Acker’s activities in light of the amount of outstanding debt he is maintaining. Last, Mr. Ackers was responsible for overseeing the construction activity of the new training facility. The span of his control includes the ability to retain and approve payments to vendors and initiate change orders without secondary approvals. Mr. Ackers also has the ability to override controls in his capacity as president. Furthermore, Mr. Ackers handles cash associated with program, promotion, and ticket sales.
Terri Hughes: Ms. Hughes has spent at least 20 years working with Mr. Ackers. Furthermore, she has been acquainted with Mr. Ackers for at least 22 years although the extent of their relationship is not known. Prior to her employment with TBC, Ms. Hughes worked for Mr. Ackers as his assistant at Pizzano’s Restaurant in Miami. Pizzano’s Restaurant was owned by Mr. Ackers. Additionally, Ms. Hughes allegedly purchased a home in the Florida Keys with cash provided by Mr. Ackers as “bonuses” for her superb work. A home in the Florida Keys can be rather expensive in addition to the ongoing property taxes and maintenance. When viewed in conjunction with Ms. Hughes’ salary and her maintaining rent payments for a second home in Tallahassee, one must question whether her income can support such a lifestyle.
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Tallahassee Bean Counters. (2016, Oct 23). Retrieved from https://studymoose.com/tallahassee-bean-counters-essay