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The Fraud Continues

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ACC571: FORENCIS ACCOUNTING | Case Study 1: And the Fraud Continues | SOLIAT KOSOKO | | Professor: Dr. Timothy Franklin Deleanor Brown | 1/20/2013 |

Introduction

This case demonstrates organized crime, occupational fraud and abuse. This crime is commonly seen among individuals and organizations that are in a lot of social and financial pressures. Some of the crimes involve organize crime are money laundering, mail and wire fraud, conspiracy and racketeering. Any organization that has weak or no internal control gives employees the opportunities to commit fraud or use company assets without permission. In this case there were multiple internal control weaknesses that allowed Pavlo to carry out the fraud and the different tricks he used to cover the whole scam. In this paper I would be discussing the internal control weaknesses that existed at MCI and contributed to the commission of this fraud, identifying and justifying the approach I would take if I suspected fraudulent activity within an organization, the ethical nature of Pavlo’s actions in this case and the theory related to crime causation to this case.

Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud.
Internal Controls is an integral part of any organization's financial and business policies and procedures. Internal controls consists of all the measures taken by the organization for the purpose of protecting its resources against waste, fraud, and inefficiency; ensuring accuracy and reliability in accounting and operating data, securing compliance with the policies of the organization and evaluating the level of performance in all organizational units of the organization. Internal controls are simply good business practices. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong

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