Internal control and financial fraud
Accounting, management and criminology researchers continue to suggest the importance of effective internal control to detect and prevent fraud in organisations. While studying
Accounting Systems and Assurance
unit,
you will learn about various types of fraud and internal control measures. The following links unfold enormous attention from the media, politicians and regulators about internal control weaknesses and a multi-million-dollar financial fraud in Queensland Health in the recent past.
http://www.abc.net.au/news/2011-12-09/man-suspected-of-queensland-health-fraud/3723238
http://www.ccc.qld.gov.au/research-and-publications/publications/misconduct/qhealth/qhealth
Requirements:
(i) Undertake a review of literature to explain the importance of internal control for detecting and preventing fraud in organisations. Use 4 relevant journal articles to develop your answer. Download the journal articles through CQUniversity databases.
(ii) On the basis of the facts stated in the media and documents in the above links, discuss internal control weaknesses in Queensland Health which failed to detect and prevent a multi-million-dollar financial fraud prior to its occurrence.
(iii) Identify and explain an internal control framework or a combination of internal control frameworks that could have prevented financial fraud or reduced the possibility of financial fraud in Queensland Health.
(iv) Accounting disciplines at some universities are teaching AIS as a core or as an elective course while a few universities decided not to teach AIS even as an elective unit at undergraduate level. On the basis of your understanding of AIS and the knowledge gathered from this assignment, develop your arguments (positive or negative) regarding the importance of studying an AIS unit at undergraduate level as a core or as an elective course. Grade the importance of studying an AIS unit from 0 to 5 (e.g., 0, 1, 2, 3, 4 or 5; where 0 means not important at all and 5 indicates the highest importance).
This assessment is linked to Modules 1, 4 and 5 (chapters 1, 5, 6 and 7 of your text book).