Organization control structure

Assignment Help Business Management

Reference no: EM131801836

Problem

What weaknesses in the organization's control structure must have existed to permit this type of embezzlement?

Cleaver Manufacturing

Stephanie Baskill, an unemployed accountant, lives one block from the Cleaver Manufacturing Company. While walking her dog last year, she noticed some ERP manuals in the dumpsters. Curious, she took the manuals home with her. She found that the documentation in the manual was dated two months prior, so she thought that the information must be fairly current.

Over the next month, Stephanie continued to collect all types of manuals from the dumpster during her dog-walking excursions. Cleaver Manufacturing was apparently updating all of its documentation manuals and placing them online. Eventually, Stephanie found manuals about critical inventory reorder formulas, the billing system, the sales order system, the payables system, and the operating system.

To gain access to the organization, Stephanie took a low-profile position as a cleaning woman, giving her access to all areas in the building. While working, Stephanie snooped through offices, watched people who were working late type in their passwords, and guessed passwords. She ultimately printed out lists of user IDs and passwords using a Trojan horse, thus obtaining all the necessary passwords to set herself up as a supplier, customer, systems operator, and systems librarian.

As a customer, she ordered enough goods to trigger the automatic inventory procurement system to purchase more raw materials. Then, as a supplier, Stephanie would deliver the goods at the specified price. She then adjusted the transaction logs once the bills were paid to cover her tracks.

Stephanie was able embezzle, on average, about $125,000 per month. About sixteen months after she began working at Cleaver, the company controller saw her at a very expensive restaurant one evening, leaving afterwards in a luxury car. The controller then asked the company's security personnel and internal auditors to keep a close watch on Stephanie.

Reference no: EM131801836

Questions Cloud

What would be the change in monthly operating income : What would be the change in monthly operating income if Premier buys the clocks instead of making them

Implementing a rehabilitation program : The U.S. government has decided to implement a rehabilitation program similar to that of Saudi Arabia. It has hired as special advisors some of the Saudi Arabia

Discuss about the new technology thats really the issue : The sexual revolution was, at least in part, launched by these two technological advancements. The TV show, Mad Men, sort of depicts all of that.

Contrast the two conceptualizations of empowerment : Compare and contrast the two conceptualizations of empowerment. Discuss the criticism of empowerment.

Organization control structure : What weaknesses in the organization's control structure must have existed to permit this type of embezzlement?

How effectively are the research results presented : Use the Internet to locate the most recent annual report published by a large corporation from the most recent Fortune 500 list, such as McDonalds, or Target.

Write a brief summary on the topic of place : BMK 201 - Principles of Marketing ASSIGNMENT - PLACE - Current Marketing News. Write a brief summary on the topic of PLACE

Major definitions of emotional intelligence : Describe at least three major definitions of emotional intelligence. How would you define emotional intelligence?

Determining the production capacity : Consider the following process. Every traveler from Vancouver to the U.S. has to pass security and then immigration at Vancouver.

User Account

All Pages