Question

Assignment: Fraud Prevention, Deterrence, and Detection at Diamond Foods Forensic accountants are often called upon to examine a company's fraud and internal controls and make improvements to the system. Read the Diamond Foods case study located in your Syllabus. Checklist Prepare a 2-3 page paper describe the deficiencies that existed in corporate governance, internal controls, and other areas, using the risk factors listed on pages 505-508. Explain how the risk factors you found increase fraud risk. For each fraud risk factor, suggest an internal control that will minimize the risk. Look for an article regarding internal controls for fraud control in the Library accessible in the home area of the course room. Use a short APA citation from your chosen article to support your suggested internal controls and provide the appropriate APA accompanying reference on a separate last page.

Answer 1

Answer :-

Presentation :-

• The false exercises are in charge of the loss of employment and loss of cash all inclusive.
• The moral conduct of the expert and inspectors is exceptionally important for the broad development of a business and its association.
• The accomplishment of an organization is pretty much subject to the moral conduct of the workers and bookkeeping experts.
• The paper will examine the fake exercises that reason misfortune to the organization and uncover exploitative conduct of the general population behind the fake movement on account of Diamond nourishment inc. what's more, will likewise propose an interior control for the common arrangement of cheats.

Issues:

• Diamond Foods inc. is a nibble nourishment organization and this case includes cheats in budgetary detailing and income the executives.
• One of the organizations of the organization is to purchase walnuts from its cultivators and offer those to the retailers.
• The organization falsely controls the account procedure and postpone the cost paid to the producers because of which the swelled income are appeared by the organization for the year 2010 and 2011.

Insufficiencies in inside controls:

• The bookkeeping framework is controlled and the CFO counsel the bookkeeping and fund office to swell the cost to the walnut paid to the cultivators and made the last portion installment and demonstrated the rest of the equalization as the development installment made to providers which isn't the situation and blow up the profit for the important years.
• The organization manufactured paraded its cash esteem and made its gigantic realm out of the conceded installment to provider.
• He kept all above water with an enormous obligation for haggling as a cautiously arranged plan of extortion.
• The organization swelled the profit in the yearly report and falsely blows up its income per share.
• Because of the equivalent, the stock cost of the organization went high and friends collects gigantic cash from stock contributions.

Misrepresentation Prevention:

• The subsequent misrepresentation is the finished lack of inside control and disregards the significant bookkeeping norms.
• The extortion can be anticipated if the organization has an appropriate evaluating and bookkeeping rehearses and the bookkeeping norms are pursued legitimately.
• Along these lines the organization won't probably control the installments and blow up the profit.

Note :-

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