(Solution Download) 1 Describe the symptoms of fraud that might be evident

1. Describe the symptoms of fraud that might be evident to a fellow employee.
2. Recently, his employer has been putting more emphasis on controlling cost. With the slowing of overall technology spending, executives have ordered managers to closely monitor expenses and have given vice presidents greater responsibility for balance sheets. What positive or negative consequences might this pose to the company in future fraud prevention?
3. As discussed previously, all frauds involve the following key elements: perceived pressure, perceived opportunity, and rationalization. Describe two of the key elements of the Jones fraud? pressure and opportunity.
4. From the scenario, what measures has the company taken to prevent fraud? In what ways could the company improve?

In his own words, Daniel Jones was ?The Dude.? With his waist-long dreadlocks, part-time rock band, and well-paid job managing a company?s online search directory?he seemed to have it all. Originally from Germany, Jones, now age 32, earned his doctorate and taught at the University of Munich before coming to the United States, where he started his career in computers. In 1996, Jones started working with the company as a director of operations for U.S.-Speech Engineering Service and Retrieval Technology?working on a new, closely guarded search engine tied to the company?s .net concept.
The company allows employees to order an unlimited amount of software and hardware, at no cost, for business purposes. Between December 2001 and November 2002, Jones ordered or used his assistant and other employees (including a high school intern) to order nearly 1,700 pieces of software which had very low cost but were worth a lot on the street. He then resold them for reduced prices?reaping millions. When items with a cost of goods sold of more than $1,000 are ordered, an e-mail is sent to the employee?s direct supervisor, who must click on an ?Approve? button before the order is filled. In no individual order was the cost of goods more than $1,000?he made sure none of the orders required a supervisor?s approval. The loosely controlled internal ordering system reflects the trust the company puts in its employees.


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