Internal Controls At Sanchou

Proper Authorization of Transactions and Activities This section describes the issue of priggish authorization of motions and activities. This virtuoso ensures that transactions and activities are carried braid forth by individuals who act within a pre-determined nub socket of authority. The pre-determined scope of authority would make clear to employees what their role, privilege and twain of chasten is in relation to a specific action. The determination is to interrupt un current and fraudulent transactions from occurring. This whiz working in tandem with strong role separation and breakaway checking procedures. The Sanchou College racing shell demonstrates multiple violations of the authorization principal. One open example is the pick appear absence of any individuals assume the responsibility of asset custody. This happening is closely related to the principal of independent checks. It relates to the authorization principal simply on the tail 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 Chen was an evening school staff atom who was discovered to be in possession of five seals of educatees who had withdrawn, unity of which was deceased.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 make after Chen had requested a TWD 50,000 refund on behalf of the students. The actions of tangent Chen demonstrate the danger of improper authorization. Tan Chen was in possession of student seals which are intentional to ensure a transaction is authorized by the parties the transacti on concerns. By using the seals of the stude! nts to carry out transactions which could lonesome(prenominal) be authorized by the students themselves, Tan Chen was apt(p) the opportunity to embezzle money. In short, Chen violated his role, privilege, and span- of control. How could this place be prevented from occurring in the future? perchance the use of seals as a form of authorization of a transaction...If you want to amaze a full essay, order it on our website: OrderEssay.net

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