Question

In the first prosecution of its kind, Poh Heng Jewellery was fined S$9,000 on Tuesday (Aug

11)after its representative pleaded guilty to one count of failing to submit a cash transaction report for a single cash transaction exceeding the prescribed amount of S$20,000.

The cash transaction reporting regime is part of "Singapore's effort to strengthen our anti-money laundering framework", she said, and a key message should be sent that the courts will mete out a harsh punishment for non-compliance.

Poh Heng's managing director Chng Hwee Siang told CNA in a statement after the hearing that Poh Heng has been running its business "with a strict code of conduct and ethics".

"While all employees were inducted with the company's (standard operating procedure) SOP and policies, we believe that we are still responsible for the oversight in reporting the cash transaction in question," said Madam Chng.

(Adapted from channelnewsasia.com, 11 Aug 2020)

Required

In the context of the above case study, consider and discuss the objectives and benefits of internal controls in organisation. Evaluate the possible reasons contributing to the cash transaction reporting lapses at Poh Heng Jewellery.

• what is the key focus/purpose of your essay?
• what are the threats faced and explain.

• what is the ideas and elaboration with appropriate sub-headings
• what is the overview of the fundamental principles of the Code of Professional Conduct and Ethics as well as the characteristics of professional scepticism

• overall reflection on the topic and concluding argument