When Cash Is "Hot-Wired" For Fraud

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Dwayne McSwain PhD, Associate Professor (Creator)
Institution
Appalachian State University (ASU )
Web Site: https://library.appstate.edu/

Abstract: Dave Martin, a CIA and CPA with three years of auditing experience with a small public accounting firm, had just started his new job with Conklin-Sterns Manufacturing (CSM) as an internal auditor. This position was new for both Dave and Conklin. CSM had recently created the internal auditing position upon the recommendation of its external auditors, a large regional CPA firm that has been doing CSM's audit for the past six years. The new internal audit position was created with the internal auditor reporting directly to the board of directors and reporting administratively to the vice president for operations. Dave had plans to first create a charter for the internal auditing "department." Although there was only one internal auditor at this time, he had visions of growing the department over time as the value of his services were proven to the board. However, when Dave arrived for his first full day, he was greeted by Bert Holmes, the vice president for operations. It seemed Bert had already identified several areas of concern, with one issue being most pressing. He was not comfortable with the current state of control over some of the processes and, in particular, had an uneasy feeling about the "true" cash count.

Additional Information

Publication
Marden, R. & McSwain, D. (2012). When Cash Is "Hot-Wired" For Fraud. Internal Auditing, January/February 2012. Volume 27, No. 1, 21-24. NC Docks permission to re-print granted by author(s).
Language: English
Date: 2012
Keywords
fraud, CPA firms, internal audit, cash controls, internal auditor

Email this document to