I’m stuck on a Accounting question and need an explanation.

  • Imagine that a coworker wants to circumvent an internal control to steal money from your company. Speculate on two (2) internal controls that your coworker might attempt to circumvent in order to steal the money. Recommend two (2) actions that the company could take in order to prevent the theft.
  • Please respond to following peer post: Two internal controls that a coworker might circumvent in order to steal money would be physical control and colluding (scheming). Physical control of money can be prevented by using banks so that employees don’t physically encounter the assets. The additional checks and balances offered as a service by the bank help control physical access to money. Internal verification and Human resource controls can help divert collusion. Companies can intermittently review internal records to check against deception. HR controls can ensure they conduct proper background checks when hiring employees. Also, Human Resource Departments can get employees handling cash bonded for added insurance against fraud.

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