Listed below are the controls that you are to select from:

Segregation of duties (If you give this answer, state what duties should be segregated.)

Using sequential prenumbered documents

Matching the customers purchase order with the sales order, shipping document and invoice to be sure the transaction is complete and no duplication occurs

Physical security for example, security cameras, security personnel and limiting access to certain areas

Reconciling the bank statement with the record of the deposits

Cancelling documents after they are completed for example, marking a sales order as shipped when the goods are sent to the customer

Having management periodically check the work of employees

Doing a periodic count of inventory to reconcile the records with the actual amount in inventory

Firing and prosecuting employees found defrauding the organization

Having customers send payments directly to a lock box at GBIs bank.

Required Activities Part 1

Following are the situations for which you are to determine which of the above ten controls should be implemented. You are only allowed to select the THREE controls that you think will best mitigate the risk. Be sure to explain how each control will help to mitigate the risk. Be sure to use the same format as the example provided in the assignment file.

RISK 1: Employees in the shipping department steal goods from the company inventory while picking goods for shipment to a customer.

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 2: The employee making the bank deposit alters the deposit slip and keeps some of the cash that was to be deposited in the bank.

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 3: A GBI employee creates fake sales returns and issues cash refunds even though no goods were purchased by the customer and no goods are returned. The GBI employee pockets the money from the refund.

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 4: The employee that picks and packs the goods is lazy and uses the picking list as the shipping report even though some of the items were not available and werent included in the shipment.

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 5: An employee that receives customer payments commits lapping fraud by diverting a payment from the customers account and concealing it by posting payment from a different customer to the account.

CONTROL 1:

CONTROL 2:

CONTROL 3:

Required Activities Part 2

Identify three additional risks that you think could be serious problems for GBI.

RISK 6:

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 7:

CONTROL 1:

CONTROL 2:

CONTROL 3:

RISK 8:

CONTROL 1:

CONTROL 2:

CONTROL 3: