Accounting Information Systems ACC564
In this case, The Greater Providence Deposit & Trust might improve its control procedures over the disbursement of its loan funds by monitoring the amount of loans that are written by their employees. Once a handful of loans are approved by a manager or another employee for a certain period of time, those loans should be audited by an external auditor. By implementing this system, I believe that it will make it a lot easier for auditors to detect fraudulent activities. Another way the bank can improve their controls is to not allow the loan writer to cash the checks for any loans. In cases such as this, the bank should segregate duties. This case indicates a lack of proper segregation of duties, because it gave too much responsibility and power to the bank manager.
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