I. Background/Issues and Concern
Rosemary Worth was speaking about the effects of a larceny that had late occurred at the concern she owned. Private Fitness. LLC. Private Fitness is a little wellness nine located in Rancho Palos Verdes. California. an upscale community located in the Los Angeles Area. As director of the concern. Rosemary hired Kate Hoffman. one of the teachers and a long-time friend. Kate’s primary undertakings included selling. installation upkeep. programming of assignments. and record maintaining.
II. Problem Statement
What should be the processs or controls that Rosemary could utilize to protect her business’s assets?
III. Point of View
There is an bing employee fraud in the company done by Kate. who is a long-time friend and at the same clip. valuable teacher and seller. Since this is a serious discourtesy made by Kate. a better control is needed to avoid incidents like these. Another thing is the company is non yet stable when it comes to policies/regulations. Proper segregation or deputation of responsibilities must be done. Merely one individual is designed to make the recording of grosss and receiving of hard currency which is Kate. That’s the ground why Kate can hold the chance to hide fraud.
IV. Aims
Specifically. the aims of the survey are the undermentioned:
1. To guarantee that grosss are all recorded ;
2. To do certain hard currency and hard currency in bank be equal to gross recorded ; and
3. To implement a better internal control.
V. Areas of Consideration
1. If employees can accommodate the alteration.
2. If Rosemary would be willing to pass clip supervising her concern.
3. If Rosemary would be willing to set boundaries between personal and concern affairs.
VII. Recommendation
We. the advisers. urge the 2nd class of action. Rosemary must retain Kate as her director. To be able to forestall the employee fraud from go oning once more. Rosemary must implement a new system for protecting the organization’s assets. The best armor in money larceny or any other fraud any employee can perpetrate is effectual internal control. Since the 2nd class of action focal points on implementing better internal control. therefore it can be the appropriate 1.
VIII. Plan of Action
• Inform the employees about the acceptance of the new system.
• Reorient the employees in the alterations of their duties. Appropriate methods of delegating duty must be implemented to avoid incompatible maps and to minimise the possibilities of mistakes because of excessively much work burden assigned to employee.
• To set up ethical criterions that discourage employees from prosecuting n dishonest or unethical or illegal Acts of the Apostless. Rosemary should form activities that may assist beef up organisational committedness.
• Appropriate policies for measuring. advancing. and counterbalancing entity’s forces must be implemented.
• Since there is less control on tracking all records of the figure of clients. length of any private fittingness category. and money minutess between clients and company. Rosemary must implement a new system utilizing a rank card as illustrated below:
• With this. company may roll up hard currency decently and prevent offenses from go oning in the operation such as larceny of organisational assets.
