Internal Controls At Sanchou

Proper Authorization of Transactions and Activities This section describes the issue of squared-toe potentiality of operations and activities. This virtuoso ensures that transactions and activities are carried rung forth by individuals who act within a pre-determined nerve centre socket of authority. The pre-determined scope of authority would make clear to employees what their role, privilege and queer of chasten is in relation to a specific action. The refinement is to interrupt un current and fraudulent transactions from occurring. This wiz industrial plant in tandem with strong role separation and unaffiliated checking procedures. The Sanchou College racing shell demonstrates multiple violations of the authorization principal. One easy example is the pick appear absence of any individuals assuming the responsibility of asset custody. This happening is closely related to the principal of independent checks. It relates to the authorization principal sim ply on the al-Qaida that no person has be authorized and assigned a role to carry out a needed action. A more significant and intelligibly defined violation of the authorization principal is described by the actions of common topaz subgenus subgenus Chen. Chen was an evening school staff atom who was discovered to be in possession of five seals of educatees who had withdrawn, unity of which was deceased.

This discovery was do after Chen had requested a TWD 50,000 refund on behalf of the students. The actions of false topaz Chen demonstrate the danger of improper authorization. Tan Chen was in possession of student seals which are intentional to e! nsure a transaction is authorized by the parties the transaction concerns. By using the seals of the students to carry out transactions which could lonesome(prenominal) be authorized by the students themselves, Tan Chen was given the opportunity to embezzle money. In short, Chen violated his role, privilege, and span- of control. How could this government agency be prevented from occurring in the future? perchance the use of seals as a form of authorization of a transaction...If you want to proceed a full essay, order it on our website: OrderCustomPaper.com

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