Question 72 both pics have whole question in it the actual question I need answe

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Question 72 both pics have whole question in it the actual question I need answered is describe internal controls that should have been in place at the air force to help.prevent such fraud

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Uhe flowchart should depict the able, and could purchasing processes, and the second flowchart should depict the cash disbursements processes c. Describe any weaknesses in these processes or internal controls. As you identify weaknesses, also describe your suggested improvements. alu- olph from d. Draw two new process maps that include your ggested improvements. One process map should epict the purchasing processes, and the second process map should depict the cash disbursement processes. low, a ermine hat 72 The United States General Accounting Office (GAO) Office of Special Investigations was responsible for investigating a potential purchase fraud case. The man who allegedly committed the fraud was Mark J. Krenik, ndor , and tormer civilian employee of the U.S. Air Force. 3 Mr. Krenik was the Air Force's technical represent- ory ry ative on contracts with Hughes STX. Hughes STX provided hardware, software maintenance, technical

Explanation / Answer

It is quite difficult to prevent a fraud from happening in such a huge organisation nut of some preventive actions are taken then there are chances of avoiding many financial frauds.There are many ways of fraud prevention but one of the most important way out is checking the internal controls.

Internal control basically means the way of working of the entire organisation right from top i.e. the executive board of directors to the middle level management and the personnels who are responsbile for effectively carrying out the taks in operations, in the financial reporting and in complying with the company`s rules and policies.

The internal control if an organisation keep in changing with the changes in the bussiness, technology and the company environment. Altough no company becomes 100% percent fraud proof but still strengthning the internal control policies, procedures and processes will definitely help in prevention of fraud in an organistaion.

Strengthning internal control is a process which involves reviewing all the processes taking place in an organisation, sometimes internal control is enhanced in one department and sometimes it is needed to enhance the internal control in all th edepartments. This kind of review involves a complete checkup of people, processes and the technology being used in the organistaion.

The following are the steps than can be followd in order to enhance the internal control:

As in the above question, MR.krenik had opened accounts by his name and by some other names in thebanks at maryland. This activity of Mr. krenik should have been pointed out and monitored by the finance department of the airforce.And when Mr. Krenik had deposited the invoices and stated that deliveries had been made, the invoices should have beed cross checked by the accounts department and they should have communicated with the department responsible for keeping an account of the material received by Mr. Krenik.

If the Accounts department and the department responsible for recieving the hardware and software material from Mr. krenik had been more active and had communicated with each other, then Mr. Krenik would have been caught at very early stage.

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