Research shows that anyone can commit fraud. Fraud perpetrators usually cannot be distinguished from other people on the basis of demographic or psychological characteristics. Most fraud perpetrators have profiles that look like those of honest people.

b. For each of the following circumstances, identify which of the internal control activities or procedures was lacking and recommend how the company should change its procedures to avoid problem in the future.

i. Maidin Retailers' losses due to bad debts have increased dramatically over the past year. In an effort to increase sales, the managers of certain stores have allowed large credit sales to occur without review or approve of the customers.

ii. An accountant hid his theft of RM200.00 from a company's bank account by overstating outstanding cheque on monthly reconciliations. He believed the manipulation would not be discovered.

iii. Joe Silva works in a store room. He maintains the inventory records, counts the inventory and has unlimited access to the store room. He occasionally steals items of inventory and hides his theft by overstating the physical inventory records.

iv. Receiving reports are sometimes filled out days after shipments have arrived.

c. Provide any two (2) differences of accountant's roles, external auditor's roles and forensic accountant's roles.