Question 31 Not yet answered Marked out of 8.00 Flag question Roses Hotel has an operational process where purchases are delivered to the purchase requisition department immediately after they are delivered to the hotel. Richard is a purchasing accounts assistant at Roses Hotel. As an employee at Roses, Richard has seen flamboyant weddings held at the hotel. He recently got engaged to his partner and he promised a similar wedding as those celebrated at Roses hotel. Richard's annual salary is inadequate to meet his wedding promises. He decides to randomly enter fictitious purchases in the ERP. Once the fictitious purchases are successfully submitted, Richard immediately notifies the accounts payable staff member, Lou Brown, so he can enter the acquisition in the accounts payable ledger in the accounting software. Once the purchases are processed without any queries, the payment is made to a non-existent supplier's bank account, an account opened by Richard with a fictitious company name. Richard withdraws the money in cash over the ATM machine and then saves the cash in his home. This fraud continues undetected for several years despite Richard's wedding promises having been fulfilled. Profit from the food and beverage department at Roses hotels has plummeted over the years. Recently, the manager of Roses hotel read an article titled "Prevent and Detect Food and Beverage Fraud" published in a national journal. The manager believes this could be the reason for the Food and Beverage department's poor financial performance. However, he requires more understanding on what can be MacBook Pro sity manager believes this could be the reason for the Food and Beverage department's poor financial performance. However, he requires more understanding on what can be considered as fraud, fraud deterrence, fraud detection and fraud investigation, all of which were key points in the article. Required: i) Discuss why the fraud at Roses Hotel has gone unreported and why it has not therefore been prosecuted. (3 marks) ii) Identify five deficiencies that existed in the internal environment of the Enterprise Risk Management Integrated Framework (ERM) at Roses International Hotel. (5 mark [Total: 8 Mar 7 A iii III c