Betty and Tony are concerned that clients may be potential targets for internal and external fraud based on this media release.As their ERP is more than 10 years old, they feel their internal controls are outdated and do not want you to review their current system of controls.Betty and Tony have requested that you focus your research on current threats to the online dating industry and methods of mitigation of these threats.The current process for new clients and accounts receivable at LFL is as follows:

• When a new client joins LFL they complete an online application entering all personal details and bank account details.
• As part of this application process the customer provides consent to debit the fees from their credit card.
• A range of different services apply, hence differing costs are associated with these packages. The client selects the appropriate services and acknowledges these fees are subject to change.
• Any employee in the new accounts team may create the new customer profile.Once the profile is entered into the system the dating matches are generated.The credit card details are forwarded to the accounts receivable clerk for processing.
• The information for each potential date is sent by email to the new customer to select a possible candidate.The information includes; name, date of birth, job title, hobbies and interests, suburb of residence, client ID, and a photo.
• If the customer wants extra information on their potential dates, they may contact the customer relationship team for this.
• The current process for accounts receivable requires the accounts receivable clerk to upload customers credit card details to the banking application for the monthly processing of client payments. The account receivableclerk will generate invoices and payment confirmations to distribute via email to customers.
• LFL has a number of business bank accounts, hence the ERP system allows the accounts receivable clerk to nominate bank account for receipt of credit card payment.

Using the information provided to you, prepare abusiness reportto Betty and Tony addressing the following:

1. An overview of fraud in Australia.(1 Mark)
2. Describe five (5) common forms of fraud that occurs over accounts receivable in Australia.(2.5 marks)
3. Critical analysis of five (5) possible internal control weaknesses relating to LFL's systems that allow fraud to occur and the impact these weaknesses could have on the organisation.(2.5 marks)
4. Recommendation of specific application controls LFL could implement to minimise the impact of each of the potential weaknesses you have identified above. Note that your client is seeking practical controls they can implement in the coming months, not theoretical controls;(5 marks)
5. Following from the weaknesses and controls you have identified, prepare part of a document flowchart to illustrate the implementation of at least two (2) of these controls. As part of your flowchart:(6 marks)
6. include at least two (2) relevant business areas (you do not need to document the entire process); and
7. provide a short narrative of how the document flowchart captures the application of controls you have identified.