Case 1: An ex-employee of a companys payable department was able to steal around $200K by filling fake invoices from his own dummy company. A forensic accounting team discovered that there were 12 fake invoices were submitted and paid by the ex-employee over the time frame of previous 1 year. Payments made of the fake invoices were paid first into account of his wife, after which they were transferred into his own account.

Keeping the Case 1 in view, it can be observed that the organization is lacking behind in structure and quality controls.

Required:

1. What can be done the future to prevent such activity in future? Explain by suggesting what internal controls should be set in place by the organization. (10 marks)