Need the areas that are below a 2 revised NOT WHOLE ASSIGNMENT

Anonymous
timer Asked: Dec 28th, 2018
account_balance_wallet $35

Question description

This assessment has six-parts. Click each of the items below to complete this assessment.

PART 1: ENSURING ACCURATE FINANCIAL DATA

Scenario

You work for a company that has recently experienced a case of embezzlement. The management team is looking for ideas on how it can prevent this from happening in the future and has asked you to present ideas during its next monthly meeting. Using the following case, prepare a 10-slide presentation that presents the details of the case and ideas for how the company could have prevented the embezzlement. Include details on how the company can ensure accurate financial data.

Jared Smith has served as the executive director of the Community Arts Organization for more than 10 years. The Community Arts Organization is led by a board of directors. Jared works independently. He receives all membership fee payments (cash and checks), and he pays all bills and reconciles the checking account. No one reviews Jared’s work and the Community Arts Organization is not regularly audited.

Over the course of the past 5 years, Jared has committed fraud and embezzled nearly $400,000. Jared deposits membership fee payments directly into his own bank account. He also writes Community Arts Organization checks to himself and has created phony companies that he writes checks to and deposits the checks into his own bank account.

PART 2: EXPLAINING VARIANCES IN PERFORMANCE REPORTS AND SUGGESTING POSSIBLE CAUSES AND REMEDIES

Read the “Widget Company Performance Report” document, provided with this Assessment. Imagine that you are the manager of the production department at the Widget Company and you have been asked to explain the variances found in a performance report, propose possible causes, and make suggestions for how the variances can be remedied. Using the information provided in the Widget Company Performance Report, prepare a memo to your boss that explains the possible causes of the variances in the performance report, and suggest how the company can remedy them. (1 - 2 pages)

PART 3: ALTERNATIVES TO DISCOUNTED CASH FLOWS, THE INFORMATION THEY PROVIDE TO INFORM CAPITAL INVESTMENT DECISIONS, AND THE TYPES OF AND USEFULNESS OF QUALITATIVE INFORMATION ON THE DECISION-MAKING PROCESS

Scenario

As a new product development manager, you are considering investment proposals for two mutually exclusive investment opportunities. The projects have been analyzed using net present value (NPV), internal rate of return (IRR), payback, and accounting rate of return (ARR), and the results are presented in the Investment Proposals document.

Assume the company requires a minimum return of 16% and a payback of 3 years. Evaluate the projects using the analysis provided and write a brief report that makes a recommendation based on the data. Also include qualitative factors that should be considered and an explanation of how they would impact the recommended investment decision. (1 page)

PART 4: USING TRANSFER PRICING METHODS

Scenario

Graphic Art, Inc. has a print division that produces art prints in China and a Retail Division in Greece that sells the prints. The Print Division has a low 20% income tax rate and the Retail Division has a high 50% income tax rate. The Retail Division in Greece is subject to a 10% import duty on the transfer price of all imported products. Both China and Greece allow firms to use either variable or full cost as the transfer price. The Graphic Art document summarizes both transfer pricing methods.

Assuming both divisions have significant positive taxable income, write a business email that describes the transfer pricing method that you think Graphic Art, Inc. should use. Be sure to cite the data from the spreadsheet. (2 - 3 paragraphs)

PART 5: THE FLEXIBLE BUDGET

Scenario

As the newly promoted general manager of the Widget Company, you prepared a performance report using Excel and presented this to your boss. (See “Widget Company Performance Report.”) Your boss e-mailed you and asked for more information regarding the usefulness of a flexible budget report to assess performance. Prepare an e-mail to your boss explaining why the flexible budget provides more useful information than a static budget. (3 - 4 paragraphs)

PART 6: BREAK-EVEN ANALYSIS AND DECISION MAKING

Scenario

Jaden Water Inspection Service tests water quality for industrial applications.

Jaden receives $150 for each inspection and wants to expand its business by adding another employee and vehicle. Jaden anticipates that another employee would add 60 additional inspections per month. Jaden has determined that the average cost for each inspection is $45. The fixed costs for a new employee and vehicle are $3,000 per month.

To persuade his investors that adding another employee is a good idea, Jaden prepared a break-even analysis. (See the “JWIS Break-Even Analysis” document.) Assume the role of Jaden and prepare a report that includes the following (1 to 2 pages):

  • An explanation of the purpose of a break-even analysis as it relates to this case
  • Based on the break-even analysis, an explanation of why the additional employee is a good investment



FEEDBACK FROM PROFESSOR , The areas that have below a 2 I need revised

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three details of the business case are presented.

Additional Comments:


Learning Objective 1.2: Create a slide presentation that explains how the company could prevent embezzlement.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three methods are presented.

Additional Comments:


Learning Objective 1.3: Create a slide presentation that depicts the steps an organization should take to ensure accurate financial data.:

MEETS EXPECTATIONS
2

Slides showing the steps an organization can take to ensure accurate financial data are accurate and complete.

Additional Comments:

Discussing two recent high profile fraud cases might move this to the Exceeds Expectations level.
Learning Objective 2.1: Prepare a business memo.:

NOT PRESENT
0Business memo is not present.
Additional Comments:

A business memo format was not used.
Learning Objective 2.2: Explain variances in a performance report.:

MEETS EXPECTATIONS
2

Explanation of variances in a performance report is accurate, complete, clear, and related to the business context presented.

Additional Comments:

Discussing whether all variances in a performance report should be examined might move this to the Exceeds Expectations level.
Learning Objective 2.3: Suggest possible causes of variances in a performance report.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

Response identifies three reasons for variances that could result from external factors over which the organization has no control.

Additional Comments:


Learning Objective 2.4: Propose possible remedies for variances in a performance report.:

MEETS EXPECTATIONS
2

Proposal includes possible remedies for variances in a performance report that are accurate, clear, and related to the business context.

Additional Comments:

Discussing the stakeholders involved in the remedies and the effect of the remedies on the stakeholders might move this to the Exceeds Expectations level.
Learning Objective 3.1: Explain how various alternatives to discounted cash flows provide information to help make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation of how various alternatives to discounted cash flows provide information to help make capital investment decisions is accurate, complete, clear, and related to the business context.

Additional Comments:

Discussing the weaknesses of the alternative methods might move this to the Exceeds Expectations level.
Learning Objective 3.2: Explain the types of qualitative information that are used to make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation includes the types of qualitative information that are used to make capital investment decisions and is accurate, clear, and related to the business context.

Additional Comments:

Including the rationale to support the use of qualitative information might move this to the Exceeds Expectations level.
Learning Objective 4.1: Prepare a business email.:

NOT PRESENT
0Business email is not present.
Additional Comments:

A business email format was not used.
Learning Objective 4.2: Determine the appropriate transfer pricing method to use for a given situation.:

NEEDS IMPROVEMENT
1

The selected transfer pricing method to use is not appropriate and/or is not supported by relevant data.

Additional Comments:

You need to include data from the case to support your conclusion.
Learning Objective 5.1: Explain the usefulness of a flexible budget in specific business cases.:

NEEDS IMPROVEMENT
1

Explanation detailing the usefulness of a flexible budget is inaccurate and/or incomplete and does not include an explanation for why a flexible budget provides more useful information than a static budget report.

Additional Comments:

I suggest you re-read what you wrote and make sure it is correct with respect to the differences between a static budget and a flexible budget. I highlighted some of the concerns, but not all of them.
Learning Objective 6.2: Explain the usefulness of break-even analysis on decision-making.:

NEEDS IMPROVEMENT
1

Explanation of the usefulness of break-even analysis on decision-making is inaccurate and/or incomplete.

Additional Comments:

The grammar issues make it difficult to understand what you wrote. Also, be sure to use specific information from the case. How much revenue will be generated by an additional employee? What will it cost to hire and use the employee? Based on the data is it feasible to hire a new person?
Written Communication: PS 1.1: Use proper grammar, spelling, and mechanics.:

NEEDS IMPROVEMENT
1

Multiple minor errors in grammar, spelling, and/or mechanics are distracting and negatively impact readability.

Additional Comments:

I marked some, but not all, of the grammar and spelling issues. I suggest you proof read carefully.
Written Communication: PS 1.2: Organize writing to enhance clarity.:

MEETS EXPECTATIONS
2

Writing is generally well-organized. Introductions, transitions, and conclusions provide continuity and a logical progression of ideas.

Additional Comments:


Written Communication: PS 1.3: Apply APA style to written work.:

MEETS EXPECTATIONS
2

APA conventions for attribution of sources, structure, formatting, etc., are generally applied correctly in most instances. Sources are generally cited appropriately and accurately.

Additional Comments:


Written Communication: PS 1.4: Use appropriate vocabulary and tone for the audience and purpose.:

EXCEEDS EXPECTATIONS
3Vocabulary and tone are consistently tailored to the audience and effectively and directly support communication of key concepts.
Additional Comments:


Technology: PS 3.1: Use images and layout of presentations to effectively communicate content to a specific audience.:

EXCEEDS EXPECTATIONS
3Images and design elements are used purposefully, and they effectively support audience engagement and understanding of key concepts.
Additional Comments:


Critical Thinking and Problem Solving: PS 5.1: Analyze assumptions and fallacies.:

EXCEEDS EXPECTATIONS
3

Response clearly and comprehensively assesses the reasonableness of assumptions in a given argument.

Response provides a detailed and compelling analysis of implications of fallacies and logical weaknesses in a given argument.

Additional Comments:


Critical Thinking and Problem Solving: PS 5.2: Generate reasonable and appropriate assumptions.:

EXCEEDS EXPECTATIONS
3Response justifies the reasonableness and need for assumptions in an original argument.
Additional Comments:





Learning Objective 1.1: Create a slide presentation that depicts pertinent details of the business case.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three details of the business case are presented.

Additional Comments:


Learning Objective 1.2: Create a slide presentation that explains how the company could prevent embezzlement.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three methods are presented.

Additional Comments:


Learning Objective 1.3: Create a slide presentation that depicts the steps an organization should take to ensure accurate financial data.:

MEETS EXPECTATIONS
2

Slides showing the steps an organization can take to ensure accurate financial data are accurate and complete.

Additional Comments:

Discussing two recent high profile fraud cases might move this to the Exceeds Expectations level.
Learning Objective 2.1: Prepare a business memo.:

NOT PRESENT
0Business memo is not present.
Additional Comments:

A business memo format was not used.
Learning Objective 2.2: Explain variances in a performance report.:

MEETS EXPECTATIONS
2

Explanation of variances in a performance report is accurate, complete, clear, and related to the business context presented.

Additional Comments:

Discussing whether all variances in a performance report should be examined might move this to the Exceeds Expectations level.
Learning Objective 2.3: Suggest possible causes of variances in a performance report.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

Response identifies three reasons for variances that could result from external factors over which the organization has no control.

Additional Comments:


Learning Objective 2.4: Propose possible remedies for variances in a performance report.:

MEETS EXPECTATIONS
2

Proposal includes possible remedies for variances in a performance report that are accurate, clear, and related to the business context.

Additional Comments:

Discussing the stakeholders involved in the remedies and the effect of the remedies on the stakeholders might move this to the Exceeds Expectations level.
Learning Objective 3.1: Explain how various alternatives to discounted cash flows provide information to help make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation of how various alternatives to discounted cash flows provide information to help make capital investment decisions is accurate, complete, clear, and related to the business context.

Additional Comments:

Discussing the weaknesses of the alternative methods might move this to the Exceeds Expectations level.
Learning Objective 3.2: Explain the types of qualitative information that are used to make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation includes the types of qualitative information that are used to make capital investment decisions and is accurate, clear, and related to the business context.

Additional Comments:

Including the rationale to support the use of qualitative information might move this to the Exceeds Expectations level.
Learning Objective 4.1: Prepare a business email.:

NOT PRESENT
0Business email is not present.
Additional Comments:

A business email format was not used.
Learning Objective 4.2: Determine the appropriate transfer pricing method to use for a given situation.:

NEEDS IMPROVEMENT
1

The selected transfer pricing method to use is not appropriate and/or is not supported by relevant data.

Additional Comments:

You need to include data from the case to support your conclusion.
Learning Objective 5.1: Explain the usefulness of a flexible budget in specific business cases.:

NEEDS IMPROVEMENT
1

Explanation detailing the usefulness of a flexible budget is inaccurate and/or incomplete and does not include an explanation for why a flexible budget provides more useful information than a static budget report.

Additional Comments:

I suggest you re-read what you wrote and make sure it is correct with respect to the differences between a static budget and a flexible budget. I highlighted some of the concerns, but not all of them.
Learning Objective 6.2: Explain the usefulness of break-even analysis on decision-making.:

NEEDS IMPROVEMENT
1

Explanation of the usefulness of break-even analysis on decision-making is inaccurate and/or incomplete.

Additional Comments:

The grammar issues make it difficult to understand what you wrote. Also, be sure to use specific information from the case. How much revenue will be generated by an additional employee? What will it cost to hire and use the employee? Based on the data is it feasible to hire a new person?
Written Communication: PS 1.1: Use proper grammar, spelling, and mechanics.:

NEEDS IMPROVEMENT
1

Multiple minor errors in grammar, spelling, and/or mechanics are distracting and negatively impact readability.

Additional Comments:

I marked some, but not all, of the grammar and spelling issues. I suggest you proof read carefully.
Written Communication: PS 1.2: Organize writing to enhance clarity.:

MEETS EXPECTATIONS
2

Writing is generally well-organized. Introductions, transitions, and conclusions provide continuity and a logical progression of ideas.

Additional Comments:


Written Communication: PS 1.3: Apply APA style to written work.:

MEETS EXPECTATIONS
2

APA conventions for attribution of sources, structure, formatting, etc., are generally applied correctly in most instances. Sources are generally cited appropriately and accurately.

Additional Comments:


Written Communication: PS 1.4: Use appropriate vocabulary and tone for the audience and purpose.:

EXCEEDS EXPECTATIONS
3Vocabulary and tone are consistently tailored to the audience and effectively and directly support communication of key concepts.
Additional Comments:


Technology: PS 3.1: Use images and layout of presentations to effectively communicate content to a specific audience.:

EXCEEDS EXPECTATIONS
3Images and design elements are used purposefully, and they effectively support audience engagement and understanding of key concepts.
Additional Comments:


Critical Thinking and Problem Solving: PS 5.1: Analyze assumptions and fallacies.:

EXCEEDS EXPECTATIONS
3

Response clearly and comprehensively assesses the reasonableness of assumptions in a given argument.

Response provides a detailed and compelling analysis of implications of fallacies and logical weaknesses in a given argument.

Additional Comments:


Critical Thinking and Problem Solving: PS 5.2: Generate reasonable and appropriate assumptions.:

EXCEEDS EXPECTATIONS
3Response justifies the reasonableness and need for assumptions in an original argument.
Additional Comments:





Learning Objective 1.1: Create a slide presentation that depicts pertinent details of the business case.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three details of the business case are presented.

Additional Comments:


Learning Objective 1.2: Create a slide presentation that explains how the company could prevent embezzlement.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

More than three methods are presented.

Additional Comments:


Learning Objective 1.3: Create a slide presentation that depicts the steps an organization should take to ensure accurate financial data.:

MEETS EXPECTATIONS
2

Slides showing the steps an organization can take to ensure accurate financial data are accurate and complete.

Additional Comments:

Discussing two recent high profile fraud cases might move this to the Exceeds Expectations level.
Learning Objective 2.1: Prepare a business memo.:

NOT PRESENT
0Business memo is not present.
Additional Comments:

A business memo format was not used.
Learning Objective 2.2: Explain variances in a performance report.:

MEETS EXPECTATIONS
2

Explanation of variances in a performance report is accurate, complete, clear, and related to the business context presented.

Additional Comments:

Discussing whether all variances in a performance report should be examined might move this to the Exceeds Expectations level.
Learning Objective 2.3: Suggest possible causes of variances in a performance report.:

EXCEEDS EXPECTATIONS
3

Response demonstrates the same level of achievement as “2,” plus the following:

Response identifies three reasons for variances that could result from external factors over which the organization has no control.

Additional Comments:


Learning Objective 2.4: Propose possible remedies for variances in a performance report.:

MEETS EXPECTATIONS
2

Proposal includes possible remedies for variances in a performance report that are accurate, clear, and related to the business context.

Additional Comments:

Discussing the stakeholders involved in the remedies and the effect of the remedies on the stakeholders might move this to the Exceeds Expectations level.
Learning Objective 3.1: Explain how various alternatives to discounted cash flows provide information to help make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation of how various alternatives to discounted cash flows provide information to help make capital investment decisions is accurate, complete, clear, and related to the business context.

Additional Comments:

Discussing the weaknesses of the alternative methods might move this to the Exceeds Expectations level.
Learning Objective 3.2: Explain the types of qualitative information that are used to make capital investment decisions.:

MEETS EXPECTATIONS
2

Explanation includes the types of qualitative information that are used to make capital investment decisions and is accurate, clear, and related to the business context.

Additional Comments:

Including the rationale to support the use of qualitative information might move this to the Exceeds Expectations level.
Learning Objective 4.1: Prepare a business email.:

NOT PRESENT
0Business email is not present.
Additional Comments:

A business email format was not used.
Learning Objective 4.2: Determine the appropriate transfer pricing method to use for a given situation.:

NEEDS IMPROVEMENT
1

The selected transfer pricing method to use is not appropriate and/or is not supported by relevant data.

Additional Comments:

You need to include data from the case to support your conclusion.
Learning Objective 5.1: Explain the usefulness of a flexible budget in specific business cases.:

NEEDS IMPROVEMENT
1

Explanation detailing the usefulness of a flexible budget is inaccurate and/or incomplete and does not include an explanation for why a flexible budget provides more useful information than a static budget report.

Additional Comments:

I suggest you re-read what you wrote and make sure it is correct with respect to the differences between a static budget and a flexible budget. I highlighted some of the concerns, but not all of them.
Learning Objective 6.1: Explain the purpose of break-even analysis.:

MEETS EXPECTATIONS
2

Explanation of the purpose of the break-even analysis is accurate, complete, and related to the business context.

Additional Comments:


Learning Objective 6.2: Explain the usefulness of break-even analysis on decision-making.:

NEEDS IMPROVEMENT
1

Explanation of the usefulness of break-even analysis on decision-making is inaccurate and/or incomplete.

Additional Comments:

The grammar issues make it difficult to understand what you wrote. Also, be sure to use specific information from the case. How much revenue will be generated by an additional employee? What will it cost to hire and use the employee? Based on the data is it feasible to hire a new person?
Written Communication: PS 1.1: Use proper grammar, spelling, and mechanics.:

NEEDS IMPROVEMENT
1

Multiple minor errors in grammar, spelling, and/or mechanics are distracting and negatively impact readability.

Additional Comments:

I marked some, but not all, of the grammar and spelling issues. I suggest you proof read carefully.
Written Communication: PS 1.2: Organize writing to enhance clarity.:

MEETS EXPECTATIONS
2

Writing is generally well-organized. Introductions, transitions, and conclusions provide continuity and a logical progression of ideas.

Additional Comments:


Written Communication: PS 1.3: Apply APA style to written work.:

MEETS EXPECTATIONS
2

APA conventions for attribution of sources, structure, formatting, etc., are generally applied correctly in most instances. Sources are generally cited appropriately and accurately.

Additional Comments:


Written Communication: PS 1.4: Use appropriate vocabulary and tone for the audience and purpose.:

EXCEEDS EXPECTATIONS
3Vocabulary and tone are consistently tailored to the audience and effectively and directly support communication of key concepts.
Additional Comments:


Technology: PS 3.1: Use images and layout of presentations to effectively communicate content to a specific audience.:

EXCEEDS EXPECTATIONS
3Images and design elements are used purposefully, and they effectively support audience engagement and understanding of key concepts.
Additional Comments:


Critical Thinking and Problem Solving: PS 5.1: Analyze assumptions and fallacies.:

EXCEEDS EXPECTATIONS
3

Response clearly and comprehensively assesses the reasonableness of assumptions in a given argument.

Response provides a detailed and compelling analysis of implications of fallacies and logical weaknesses in a given argument.

Additional Comments:


Critical Thinking and Problem Solving: PS 5.2: Generate reasonable and appropriate assumptions.:

EXCEEDS EXPECTATIONS
3Response justifies the reasonableness and need for assumptions in an original argument.
Additional Comments:





Widget Company Manufacturing Overhead Performance Report For Month Ended June 20XX Static Budget at 6,000 units Revenue $ 60,000 Actual $ 63,240 Variance (Actual—Static Budget) $ 3,240 F Flexible Budget at 6,500 units $ 65,000 Variance (Actual— Flexible Budget) $ (1,760) U 29,250 1,950 U Less: Variable costs Contribution Margin 27,000 $ 33,000 31,200 $ 32,040 4,200 U $ (960) U $ 35,750 $ (3,710) U Less: Fixed costs Profit ©2015 Walden University 24,000 $ 9,000 25,000 $ 7,040 1,000 U $ (1,960) U $ 24,000 1,000 U 11,750 $ (4,710) U 1
Investment Proposals Net present value (NPV) Internal rate of return (IRR) Payback Accounting rate of return (ARR) ©2015 Walden University Project A Project B $ 510,000 $ 650,000 16% 3.50 17% 3.25 25% 18% 1
Graphic Art, Inc. Transfer Pricing Methods Full Cost Variable Cost Print Division (China): Transfer Price 1,500 1,000 (1,500) (1,500) 0 (500) Less: Cost Taxable Income Income Taxes (or refund) 20% (100) Retail Division (Greece): Sales Price 2,000 2,000 (1,500) (1,000) 500 1,000 250 500 150 100 400 600 400 500 Less: Transfer Price Taxable Income Income Taxes Import Duty 50% 10% Taxes in Retail Division Total Taxes China Tax Rate Greece Tax Rate Import Duty 20% 50% 10% Full Cost 1,500 Variable Cost 1,000 Sales Price 2,000 ©2015 Walden University 1
Jaden Water Inspection Service Revenue – Variable costs – Fixed costs = Profit At break-even, the profit is zero Revenue – Variable costs – Fixed costs = 0 P = price, Q = quantity, VC = variable costs, FC = fixed costs PQ – VC – FC = 0 150Q – 45Q – 3,000 = 0 105Q = 3,000 Q = 28.57 which is rounded to 29 inspections ©2015 Walden University 1
ENSURING ACCURATE FINANCIAL DATA Shericia Cobia Communicating Accounting Information 12/19/2018 Background of the Case  Despite the presence of a board of directors at the Community Arts Organization, Jared has worked independently for over 10 years  He is in charge of receiving all membership fee payments both in cash and checks)  He also pays all bills and reconciles the checking account.  There is no independent employee who reviews Jared’s work  The Community Arts Organization do not have a well-established regularly external audit process Nature of Financial Fraud  The financial loopholes have enabled Jared to engage in financial fraud of embezzling funds amounting to $400,000.  Jared deposits all the payments relating to the membership fees received on behalf of the organization into his own bank account.  He also writes checks meant for the Community Arts Organization to himself  Jared has also created proxy companies which he uses to embezzle the organization’s funds by writing checks to and depositing the proceeds into his personal bank account How The Company Could Have Prevented The Embezzlement  The company ought to put Jared under close supervision to monitor his lifestyle, his activities, any possibility of engaging in conflicts of interests and daily operations.  The company ought to control the cash receipts.  The company ought to have separated the duties and responsibilities of Jared into more departments and divisions to ensure that he does not receive payments and at the same time request, make, and approve payments and expenses (Herawati, 2015).  The organization ought to have opened an account meant for the collection of payments in the name of the organization. How The Company Could Have Prevented The Embezzlement  More than one person ought to be made a signatory to all the payments and withdrawals from the organization’s account.  The organization ought to have subjected its memberships fee payment and other expenses to proper review.  The organization ought to have provided more checks and balances in the operations and activities to ensure that Jared’s work is scrutinized by another employee (Herawati, 2015).  The organization ought to have segregated the functions of Jared to institute an effective internal control procedure to its receipts and expenses. How The Company Could Have Prevented The Embezzlement  The functions of receiving membership payments ought to be separated from the functions of keeping records, reviewing the income and expenses, authorizing expenses, and reviewing the overall operations of the organization.  The organization ought to involve more than one staff in the preparation of its financial statements (McMahon, Pence, Bressler, & Bressler, 2016).  An internal auditor ought to be employed to review the work of Jared and then an external auditor be employed to undertake an independent audit of the activities of the organization.  The organization ought to have established an ethical code of conduct that binds Jared to his responsibility and duties as an accountant for the organization. How The Company Could Have Prevented The Embezzlement  The organization should have had an effective mechanism of reviewing its bank statements once it has opened a bank account for the membership fees collection (Burnes, Henderson, Sheppard, et al., 2017).  The organization ought to have an effective system of running its receipts and payments through a checking account to track all its income and expense.  The organization ought to have created a permanent tracking system that details the activities of Jared and makes them not erasable.  The organization ought to have Jared rotate his duties with another employee to prevent such frauds from taking place. How The Company Could Have Prevented The Embezzlement  The company ought to have established strong ethical policies and accounting procedures to guide Jared in conducting his activities and process.  Apart from the external audient, the company ought to initiate an annual stocktaking and review of its financial statements (Wells, 2017).  The Community Arts Organization ought to conduct a background check on Jared to ascertain whether; He has engaged in any financial fraud in the past. His past records as an employee in a previous organization. His general lifestyle relation to his income. Any evidence of financial fraud with other entities. How the company can Ensure Accurate Financial Data  By ensuring that complete records of transactions are kept in the journal entries.  The data entry process must be accurate and complete because it is the source document for the financial data  The employees should be trained and then subjected to close supervisions and monitoring (Wells, 2017).  The organization should have policies and procedure that guide its preparation of financial statements How the company can Ensure Accurate Financial Data  A reference account should be made available to facilitate data entry into the correct accounts (Burnes, Henderson, Sheppard, et al., 2017).  The organization accounts should be reconciled with that of external bodies such as suppliers invoices, and bank statements  A trial balance should be prepared to check for any form of error that may have been committed in the process of preparing the financial statements  The financial statements should be reviewed toad ascertain any possible error that may have been omitted  All non-cash expense should be adjusted in the statement of cash flow References  Burnes, D., Henderson Jr, C. R., Sheppard, C., Zhao, R., Pillemer, K., & Lachs, M. S. (2017). Prevalence of financial fraud and scams among older adults in the United States: A systematic review and meta-analysis. American journal of public health, 107(8), e13-e21.  Wells, J. T. (2017). Corporate fraud handbook: Prevention and detection. John Wiley & Sons.  McMahon, R., Pence, D., Bressler, L., & Bressler, M. S. (2016). New tactics in fighting financial crimes: moving beyond the fraud triangle. Journal of Legal, Ethical & Regulatory Issues, 19(1).  Herawati, N. (2015). Application of Beneish M-Score models and data mining to detect financial fraud. Procedia-Social and Behavioral Sciences, 211, 924-930.

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School: Cornell University

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