United Way & Goodner Bros Audit Case Study

3.3 United Way 1.There are several fundamental and economic internal keep in lines that would do saved these charities millions of dollars. The commencement being in the main that executives within these organizations should non obtain total control over their respective pecuniary functions. several(prenominal) of these fraudsters had complete control in that they would receive the donation checks, pop off them by endorsing them, and then likewise having control over the financial records necessary to account, or not, for the donations. A simple control would have been a separation of duties such as psyche who receives the checks should not have the function of excessively recording these entries in auxiliary or general ledgers. Having custody, authorization, and control over recording of donations makes it alone too easy for veritable checks to disappear. A control would be to have two or more different volume open checks, create remittance lists of al l the checks they received, they then bemuse these lists to someone else and the people who postulate the checks then brings back the touch on slip with the deposit measuring which can then be verified by someone else against the remittance listings. Accountants or bookkeepers should neer handle cash or checks at any degree within the revenue and assembling cycles. excessively these charities CEOs and boards should establish a cipher of conduct etc that treats fraud extremely harshly and it is a looking at that should be adopted by top executives and then it would encounter through the kind-heartedness 2.I do not feel that certified public accountant firms have a responsibility to audit charitable or non-profits for a reduced fee because these massive charities are calm down businesses. They employee hundreds of thousands of people and function as a business, the only remnant is that they do not turn any type of profit. overly charities should be require d to hire auditors because their fee will be! substantially less than the fraud that can be break with the lack of controls or...If you want to get a full essay, establish it on our website: OrderEssay.net

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