Case Scenario:
Loss Prevention Policies
You have been working for about ten years within the private sector as a fraud investigator. You are now the director of fraud management with a well-known amusement park. Because your amusement park handles hundreds of thousands of dollars and credit card information, you must have a great fraud prevention program. Management is aware of a need for increased requirements for the amusement park to maintain a system of internal control to help prevent and detect fraud. The chief executive officer (CEO) of the amusement park, Mary Moore, is also interested in using a proactive posture toward building an antifraud prevention program, including exploring using a proactive auditing approach for fraud discovery. You have had discussions with the internal auditor and your external fraud investigators as well as accounting and consulting firms for proactive approaches for detecting fraud.
Management is aware that eliminating the opportunity for fraud is critical. Recently, the Institute of Internal Auditors (IIA), the American Institute of Certified Public Accountants (AICPA), and the Association of Certified Fraud Examiners (ACFE) have adopted a comprehensive guide for managing the business risk of fraud.
Answer the following questions in preparing this paper of 3 to 5 pages. As you answer each question, you must provide support or evidence that will enhance and empirically prove your answers. Academic criminal justice articles or real life criminal justice findings that are not found in journals or other academic sources must be used when supporting your answers. Please use APA style for all cited sources, including your reference page.
• What are the benefits of a comprehensive control program? If you were advising this corporation, what would be the specific benefits for it?
• What procedures should be considered for detective controls, including independent checks and a system for documents and records?
• Because an amusement park deals with a large amount of cash and electronic funds like credit cards, discuss the possibility of a fraud hotline as part of your program. Remember that an amusement park is just like a corporation in organization and goals for making profits. How can a hotline be implemented as a tool for preventing and detecting fraud?
• What recommendations would you offer the CEO to encourage a culture of honesty, openness, and assistance?
• Do you think that a culture of honesty, openness, and assistance can exist as suggested by Ms. Moore? Or is it a utopian idea with no understanding of how human nature works? Please provide examples to justify your answer.