Brannigan, Inc. and Chester Corporation are forming a jointly owned company to o chemical businesses now owned separately by Brannigan and Chester. The business proposition is to find operating efficiencies and to reduce costs by pooling together those operations into a single company. Brannigan and Chester will each own 50% of the stock of the newly formed company. The new company willl employ over 1,000 employees, have assets with a fair value of $5 billion, and will operate independently of Brannigan and Chester to the greatest extent possible. Ray Ponder will serve as the CEO of the new company. His vision is that the company must have a good system of internal controls, high ethical standards, and must treat its employees with dignity and respect. Because of your knowledge of fraud detection and prevention, you are a member of a task force assembled by Ray to further his vision for the company. What suggestions will you make to the team to prevent fraud from occurring at the company? Be specific with your suggestions. Question Three (10 points) A bank manager's responsibility was to make loans to customers. Auditors discovered that several loans he made over a five year period had not been repaid. A fraud investigation revealed that the manager had been receiving kickbacks from risky clients in exchange for extending loans to them. His actions cost the bank millions of dollars in uncollectible loans that should never have been made. You have been asked to offer ideas on the following: How might the bank determine the amount of kickbacks received by the manager? What advice would you offer so the situation does not repeat itself with another manager? 1. 2