A case of Fraud Concerns at a Homeowners’’ Association
Fraud Concerns代写 The pressure to steal creates an opportunity for cookbooks. What follows is a falsification of documents to cover the debts.
Companies face financial pressure, particularly at the time of delicate economic times. For instance, if a company is not able to pay employees and other expenses are due, or a person has a drug addiction and does not have many. Good people are also prone to irrational decisions and actions when under pressure. The same cases may have happened to the management of Gino.
On the other hand, an opportunity may present itself or be created because of pressure. The pressure to steal creates an opportunity for cookbooks. It can come if EagleBranch Association does not have checks and balances, lacks adequate accounts staff, lacks internal controls, and few regular audits.Fraud Concerns代写**范文
Moreover, misappropriation of company resource comes in various shapes like borrowing with a plan to repay after a while but fail due to financial problems. What follows is a falsification of documents to cover the debts. They may also start to have a negative attitude towards the company. It was the case with Gino and board members and felt that they were paying themselves.
Question 2 Fraud Concerns代写
i. Gino owned a struggling pool business which shows that he was well-off financially (p. 68).
ii. The board and Gino flaunted transaction procedures.
iii. The association bank statements and bills were sent to Gino’s address
iv. The dues increased in December 2012, the first time since 1996 (p. 68).
v. HOA by-laws were not in writing
vi. The justification given for the increase in dues is that the pool maintenance company was charging more per month, but it was not disclosed that the contract was only for six months (p. 69).
vii. The pool maintenance company had not been paid its monthly fees and had not been servicing the pool (p. 69).Fraud Concerns代写**范文
viii. Gino failed to provide records of cash disbursement
ix. HOA was not compliance with the 2013 HOA law.
x. The new treasurer was not involved in any payments
xi. The accountant gave disclaim that she was not independent.
The checks were written to board members because they were asking people who owed money to the association to write the checks to them so that they can pocket the money instead of depositing it to the association accounts.
Question 3 Fraud Concerns代写
Internal control measure that the organization can put in place include:
a. Checks written to directors should pass through relevant authorization and be justified.
b. All accounts transactions should be centralized and controlled by the treasurer to ensure control.
c. Create independent accounts department
d. Establish elaborate transaction procedures
Question 4 Fraud Concerns代写
The removal of Gino and boards require voting and agreement among all association members. Proving to other members and considering some might be close friends might prove challenging. Also, Gino and the board are all members of the association, meaning that they live in close neighborhoods. Suing a neighbor or a respected member in a community is practically and logically challenging.Fraud Concerns代写**范文
The accountant behaved unprofessionally and suspiciously when she waited for several days to allow access to account books (p. 70). Also, she could not enable members to have enough time to check the books but demanded they leave after an hour. The behavior was suspicious of her hiding something from homeowners.
It is the role of an accountant to prepare financial statements with integrity, objectivity, and professional care. She was obligated to perform her duties for the best interest of members. Also, she should have maintained objectivity and conflicts of interest. The financial statements should be independent in their material facts and figures.Fraud Concerns代写**范文
References Fraud Concerns代写
Lehmann, C.M., and Heagy, C.D., 2017. A Case Study of Fraud Concerns at a Homeowners’ Association. Issues in Accounting Education Teaching Notes, 32(1), pp.42-56.