Problem
Is now July 2023, and Dylan Grimes has been very successful in growing his business. The business now stocks over 20 different inventory lines and employs five full-time staff.
As the business continues to grow, you strongly encourage Dylan Grimes to review internal controls over cash receipts and cash payments in the business, to safeguard the business's money.
Dylan Grimes is not overly concerned, as he has never had any issues with cash going missing or being stolen in the past.
Task
Undertake some research online, looking at recent cases of employee fraud and/or supplier fraud in Australia. Prepare a letter to Dylan Grimes - discussing the importance of internal controls, and addressing the following:
• Provide a brief overview of two recent cases of employee and/or supplier fraud in Australia, explaining how money was stolen from the business. Explain what internal controls could have been implemented to reduce the risk of the fraud occurring. Include a copy of an article relating each case with your letter (or provide website links to the articles in your letter) for Dylan Grimes to review.
• To help Dylan Grimes as he considers reviewing internal controls, outline two internal controls over cash payments that can be implemented in the business (including in its Information Technology (IT) environment) immediately. In your discussion, explain how each of these controls helps to reduce the risk of fraud or theft.