or,
- 2.
I suspect most auditors would conclude that internal controls are sufficient to mitigate the fraud risk statement in this blog. Or, risk and exposure is minimal, therefore they would pass on further review. But is that really the case? The manager at the store has complete override control to keep the departed employee on the payroll system. Due to the nature of continual turnover, the manager has a continual supply of departed employees. The only real question is how the manager obtains the misappropriated funds. If paid by paper check, it is easy divert the check. If paid by direct deposit, then the manager would need to change the bank account information.
- .
