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3 22 marks When Emma Stone began working for Olives Properties, she had no intention of defrauding the company. Olives Properties owned several business properties
3 22 marks When Emma Stone began working for Olives Properties, she had no intention of defrauding the company. Olives Properties owned several business properties in the Gauteng area and, subsequent to her appointment, Emma was assigned to run one of the big shopping centres as the on-site manager. She showed available shop spaces to prospective tenants, collected rents, oversaw a maintenance crew, and generally ran the day-to-day operations of the shopping centre. After her husband was injured in a motorcycle accident, Emma started having financial difficulties. Simultaneously, one of the employees in the shopping centre maintenance crew resigned. Under normal circumstances, Emma would have been honest and completed paperwork showing that this employee had left the company, and then forwarded it to head office. Only then would she have started looking for a replacement However, this time Emma did not tell anybody at head office that the employee had resigned but kept on submitting time sheets on his behalf. According to the company's system, pay cheques were mailed to Emma and she distributed them to the employees. When the pay cheques arrived, she now look the cheque made out to this employee and cashed it at a bottle store. Emma kept on doing DELL NO w E " T Y U S D F G H x C v B N M 9 O 4 K L - > resigned for vape or sooming According to the company's system, pay cheques were mailed to Emma and she distributed them to the employees. When the pay cheques arrived, she now took the cheque made out to this employee and cashed it at a bottle store. Emma kept on doing this for approximately six months, until she was reported through the company's anonymous fraud hotine. An internal auditor was immediately sent to investigate the matter and Emma, who immediately confessed to everything, was asked to resign. A criminal case was filed against her. The details of the crime committed, and the actions taken against Emma were reported in Olives Properties' quarterly newsletter. 3 R T D F G H U DELL = = O P. KC L 4 A x C v B N M 1 3.2 3.3 3.4 Suggest four (4) practical recommendations to improve the internal controls related to the payment of wages to prevent similar fraud occurring in future. Briefly explain how the actions taken against Emma could aid in the prevention of fraud within Olives Properties. Identify the type of fraud that Emma committed and justify your answer with reference to the scenario (8) (3) (2) QUESTION 4 29 marks Discount Shoes (Pty) Ltd's objective is to produce and supply the best school shoes at the lowest possible cost across Africa. The company's manufacturing plant and head office is in South Africa and has branches across Africa. A new branch was established in Botswana a year ago due to the demand in affordable and quality school shoes. Thei Botswana branch has its own local area network (LAN) and has direct access to the head office database in South Africa. You performed an audit of general and application controls at the Botswana branch, and you noted the following weaknesses during the audit DELL 4 B E R T Y U D O O 3 P G H J K L 4 * C v B N M > L
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