Please read question in comment section below.

We hear it in the news, we see it on 60 Minutes, 20/20 and we read  about it in the paper, but often many businesses think they’re  invulnerable to fraud. Owners and managers alike, believe that because  they have a set of internal controls that their businesses are  protected. This mindset of “if it’s not broken why fix it?”, begs the  question do they really know “it’s” not broken?

As we’ve seen in  the last two videos this complacent attitude has severe consequences,  not only financially but publicly as well.

The article “The Four Elements of Fraud”  focuses in on behavior – and offers insight to risk factors involved  with fraudulent behavior and those behaviors that companies should keep  an eye out for. While this is an older article, the fundamentals remain  today.

Before reading the article:
Pretend  you own your own business. You are a sole proprietor with three  employees. One employee is a sales person; one employee is a bookkeeper  and the other employee is in shipping. You have a product that is very  popular amongst college students and therefore sales are amazing – and  the company sustains itself very nicely. As the owner, you tend to  travel to develop personal relationships with College Presidents; and  Marketing VP’s.

After reading the article: Keeping the above scenario in mind (you’re the owner, etc.) respond to the prompt below in proper written format (please follow this Discussion Board Requirements & Rubric) and answer the following: 

Prompt:  As the owner of this company, what type of internal controls do you  have in place to ensure that while you’re away the mice won’t play  (ahem, engage in fraudulent behavior)? List at least four  internal controls; and what type of protection of fraudulent behavior  they control” or in other words will provide protection from. 

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