Internal Accountant's Report to Management
Jacqueline Wright
ACC/556
November 1, 2015
Internal Accountant's Report to Management
I have been selected to review and prepare a bid for an upcoming governmental contract bid. I am currently an internal accountant within the Woods Company with 15 years of financial accounting within this firm. I am fully capable and quite knowledgably of all aspects of the financial review.
Occupational Fraud and Abuse
Occupational fraud and abuse of a company can cause dire straits for any company. The monies received as revenue can be greatly reduced and the company’s cash flow can tragically turn profits and income into a loss for the company quite quickly and easily. Several common methods of fraud are easily found in the department that does the purchasing for the company. The collusion of employees is also a very harmful method of fraud within a company. “According to the Association of Certified Fraud Examiners, companies lose nearly five percent of their revenue each year to employee and executive fraud. This amounts to nearly $3.7 trillion globally, with a median loss for each business at around $145,000” ("How Much Could Employee Fraud Cost Your Business?", 2015). The way the cash is credited and debited from the company’s books is also common. It would seem the overall biggest method of fraud is company corruption. All of these methods can ruin a company before it every really has a chance to make its mark on the market.
Corruption Schemes
There are some methods of fraud that stand out more than others. They include larceny, reimbursement for expenses, schemes in the billing and payroll departments, payments made to internal and external sources, and the forging of company checks. There are many types of corruption. The two most common forms of corruption are political corruption where “any transaction between private and public sector actors through which collective goods are...