Scenario:

You just scored your dream job working as a Senior Accountant for a local non-profit. The team is small and resources are limited. The executive director, Monique, is the only individual permitted to sign outgoing cheques. Because she is extremely busy and constantly travelling, she tends to pre-sign 10-20 cheques before each business trip. She trusts her bookkeeper, Susan, with her life and the two have built the organization together over the years. They are happy with this arrangement as it has worked well over the years.

You have no suspicions over Susan (yet) but you want to raise your concerns over this potential internal control issue with Monique.

Instructions:

1. a quick memo to Monique about your concerns addressing the following (hint: remember, nothing has happened yet and you do not want to ruin any relationships at this point):

• What could go wrong with the current process?
• What are the potential fraud risks? Describe them.
• What are your suggestions to improve the process? Be specific.