Problem

As an auditor, you are assigned to investigate the bonus system put in place by a retail s...

As an auditor, you are assigned to investigate the bonus system put in place by a retail store company. During the course of investigation of the bonus system process, you identified the following:

■ $1,000 checks were issued and sent to privileged customers.

■ The date on the checks was marked one month after the date being sent, so the check amounts were deposited a month after they were received by customers.

■ Bonus policy requires customers to spend the $1,000 amount in one of the company’s store within three days after receiving the checks.

■ Customers should pay with cash or credit card for the purchased merchandise.

Prepare a report of your analysis of the bonus system process, and include manual and automated controls situations as a possible indicator of fraud.

Fraud: What will I tell my MOM?

What is SOX?

What is internal control?

What are IT controls?

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