As disclosed in a reports, about event occurred atNational X companyis regular of theforms ofemployeeextortion that happens throughouteachday atvariousassociations.it absolutely wasnothingtoocomplicatedand exhibitedhoweverinsidersUnited Nations agencyapprehendthe eccentricities ofcontrastiveconditionsutilize their insightfor his or herownsweetening.

A Financial Managerof the National X companytook advantage hisknowledge that its must innonprofits receiving federal grants topay backanyunusedcash. Thiscashshould paid directly to thefederal department.Company, the financial manager createdbankaccount at astate capitalbankunder name very similar to thefederal department name. For over two years he had clinic workers return these checks, which he deposited into this account that he actually owned

He allegedlystartedmanyaccounts with namesalmost likevendors. Thefinancial managerhad paymentsmeantfor these vendors be sent to his dummycompaniesand laterpaida similarchecks.

TheseplansstartedinJune2010thenwentovertwoyears.Followingtheirregularitieswerediscoveredandexamined, the financial manager wasterminatedandthe case wasturnedovertoprosecutors. Becausewhite-collarcrimeisonce in a whileprosecuted.He facedfouryearsinprison,andpaybacktaxesandfines.

Instructions

1- Evaluate deeply all shortage in the internal control of National X Company, and provide recommendations to avoid such corruption and fraud.