Doug\'s Pizza Store delivers pizzas to its customers. It is open 11 am to 2 am a

Question

Doug's Pizza Store delivers pizzas to its customers. It is open 11 am to 2 am and runs on 2 shifts. The workers in the pizza store are:

Manager- 1 per shift

Cashier- 1 per shift

Cooks- 2 per shift

Delivery Persons- 2 per shift

Janitor- Comes in 2 hours per shift.

Your task is to pick each category of workers (manager, cashier, cooks, delivery person, and janitor), and explain 2 unethical ways in which these workers could "steal" or misuse the assets of the business for their own benefit. Basically, you have to explain 2 ways in which this category of worker can commit fraud.

Next, you have to come up with a preventive measure or a "control” that will prevent the worker from doing this unethical activity.

Your discussion post should be in the following format:

Fraud by Manager:

1)

2)

Preventive /Control Measure

1) For the fraudulent activity listed # 1, I suggest that the company should....

2) For the unethical activity listed 2, I suggest that.....

(You can use your own words, but please keep to this format, wherein you first suggest the fraud, and then come up with a practical solution to catch the fraud or prevent it from happening.)

Fraud by Cashier:

1)

2)

Preventive /Control Measure

1) For the fraudulent activity listed # 1, I suggest that the company should....

2) For the unethical activity listed 2, I suggest that.....

You need to do the same for cooks, janitors, and delivery persons.

It will be helpful if you type your response on a WORD document, and then copy, cut, paste into the discussion board.

Explanation / Answer

Fraud by Manager

Preventive/Control Measure

1) Manager may take a small portion of the profit of the company every month while showing an inflated figure in the Annual Income Statement.

1) Have a proper Audit done of the company’s Financial Statements by an external Auditor.

2) Manager may resort to nepotism in recruiting people for the Store.

2) The Owner should personally oversee all the recruitments done for the Store.

Fraud by Cashier

Preventive/Control Measure

1) Keep aside some cash daily by showing some fictitious transactions.

1) Have a CC TV installed above the Cashier and the end-of-the-day’s accounts should be personally checked by the Store Owner.

2) Replace some of the authentic notes by false notes every month.

2) The Owner should buy a machine that checks the authenticity of the notes and have the notes checked using the machine every week.

Fraud by Cooks

Preventive/Control Measure

1) The Cooks may buy inferior quality cooking ingredients while pocketing some of the purchase money.

1) The Owner should verify the quality of cooking ingredients from time to time.

2) The Cooks may manipulate some of the Purchase Invoices and show inflated figures, while keeping aside some of the money for themselves.

2) The Store Owner should verify all the Purchase Invoices himself/herself and may phone up the Suppliers directly if needed.

Fraud by Delivery Persons

Preventive/Control Measure

1) The Delivery Persons may show some fictitious deliveries to achieve the daily or monthly delivery targets and get undeserved incentive in the process.

1) The Delivery Persons may need to take selfie with the person to whom the delivery is made to verify the authenticity of the delivery or may obtain a digital signature (using a digital pen) from the customer.

2) The Delivery Persons may cheat on the fuel purchased for their delivery vehicles.

2) The Store Owner should personally check the fuel consumption of the delivery vehicles.

Fraud by Janitors

Preventive/Control Measure

1) The Janitors may take away some of the cleaning materials for personal use or to be sold outside.

1) The Owner should personally check the inventory of the cleaning materials used at the Store.

2) The Janitors may buy poor quality cleaning materials while pocketing some of the purchase money.

2) The Owner should verify the quality of cleaning materials from time to time.

Fraud by Manager

Preventive/Control Measure

1) Manager may take a small portion of the profit of the company every month while showing an inflated figure in the Annual Income Statement.

1) Have a proper Audit done of the company’s Financial Statements by an external Auditor.

2) Manager may resort to nepotism in recruiting people for the Store.

2) The Owner should personally oversee all the recruitments done for the Store.

Fraud by Cashier

Preventive/Control Measure

1) Keep aside some cash daily by showing some fictitious transactions.

1) Have a CC TV installed above the Cashier and the end-of-the-day’s accounts should be personally checked by the Store Owner.

2) Replace some of the authentic notes by false notes every month.

2) The Owner should buy a machine that checks the authenticity of the notes and have the notes checked using the machine every week.

Fraud by Cooks

Preventive/Control Measure

1) The Cooks may buy inferior quality cooking ingredients while pocketing some of the purchase money.

1) The Owner should verify the quality of cooking ingredients from time to time.

2) The Cooks may manipulate some of the Purchase Invoices and show inflated figures, while keeping aside some of the money for themselves.

2) The Store Owner should verify all the Purchase Invoices himself/herself and may phone up the Suppliers directly if needed.

Fraud by Delivery Persons

Preventive/Control Measure

1) The Delivery Persons may show some fictitious deliveries to achieve the daily or monthly delivery targets and get undeserved incentive in the process.

1) The Delivery Persons may need to take selfie with the person to whom the delivery is made to verify the authenticity of the delivery or may obtain a digital signature (using a digital pen) from the customer.

2) The Delivery Persons may cheat on the fuel purchased for their delivery vehicles.

2) The Store Owner should personally check the fuel consumption of the delivery vehicles.

Fraud by Janitors

Preventive/Control Measure

1) The Janitors may take away some of the cleaning materials for personal use or to be sold outside.

1) The Owner should personally check the inventory of the cleaning materials used at the Store.

2) The Janitors may buy poor quality cleaning materials while pocketing some of the purchase money.

2) The Owner should verify the quality of cleaning materials from time to time.

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