Accounting Assignment Example | Topics and Well Written Essays - 250 words - 8

Accounting - Assignment Example Moreover, they defraud the bank by inflating that they had purchased a real estate property on behalf of the bank at a value of three point two billion instead of sixty-three point five million dollars (International Financial Reporting. (2013). Stanford Company failed to carry out background check to investigate the history of the two officials prior hiring them. Secondly, the company did not setup anti-fraud policy that indicates how to detect report and curb fraud. Thirdly, the company did not have an anti-fraud training to educate employees on the risk of fraud. Additionally Stanford Company was unable to conduct job rotation which could have helped to prevent the occurrence of fraud (Iyer & Samociuk, 2006). I would recommend the company to establish internal and external control. For example, the company should carry out regular internal and external audits. Further, background check may help to identify personal character to hold sensitive financial positions. Moreover, ant-fraud policies and training should be put forth to address the issues of fraud (Iyer & Samociuk,