Case 3.5 Goodner Brothers, Inc. OBJECTIVE: To better understand the nature at which fraud can occur in a business, specifically due to weak internal controls, and to examine the characteristics of a fraudster. IMPORTANT HIGHLIGHTS: * Goodner Brothers, Inc.’s sloppy accounting practices and lax control over its inventory opened doors for theft and other types of fraud to occur internally * The lack of attention and importance that Goodner Brothers, Inc. put into their internal control
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Goodner Brothers Case 1. In most fraudulent acts three circumstances lead to such crimes being committed, and should be considered when carrying out risk assessment. These conditions are an incentive, an opportunity, as well as a rationalization; the three make up what is known as the Fraud Triangle. The three circumstances are present throughout the fraudulent acts of Woody Robinson. For instance, Woody had a rampant gambling addiction that was developed throughout college, which had led him
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KNAPP CASE 3.5 : GOODNER BROTHERS, INC. 1. Internal control objectives Goodner’s Huntington sales office should have implemented: a. Separation of duties: Sales reps like Woody were given unrestricted access to the accounting system where they could directly enter transactions. Sales reps also had direct access to inventory storage areas, and often delivered customer orders. b. Physical controls: Pad locks served as the security of Goodner’s inventory. There should have been stronger
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Goodner Brothers, Inc. Internal Control Issues 1.List what you believe should have been the three to five key internal control objectives for Goodner’s Huntington sales office. 1. Assets Safeguard The padlock and other some security are used as a physical protection of Goodner’s inventory from stolen by unauthorized person. 2. Authorization of Transaction Goodner’s policy said that the new customer required an approval of the sale manager for the credit sale. The objective of this
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car, it just wouldn’t be possible, and I can’t even imagine what would happen to me. Airplanes. The Wright Brothers' first-ever flight of a motorized airplane in 1903, introduced the era of flying into the sky. The jet engine, the supersonic flight, fighter aircraft and space travel all are rooted in Kitty Hawk, North Carolina which was the site of the achievement of the Wright brothers. Without these airplanes we wouldn’t be able to see our families in other countries. We would have to take out
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them to look for new things to do,to go out and discover and learn as much as they could . There two sons Wilber and Orville Wright are the first to built a successful airplane. Wilber was born August 16 1867and Orville was born August 19 1871.both brothers loved any thing mechanical ,loved to tear things done and built it back up . Wilber finished highs school but was never able to get his diploma ,he was going to attend Yale,because of an accident that happens wile playing ice hockey Wilber got hit
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A fairy tale (pronounced /ˈfeəriˌteɪl/) is a type of short story that typically features European folkloric fantasy characters, such as fairies, goblins, elves, trolls, dwarves, giants, mermaids, or gnomes, and usually magic or enchantments. Fairy tales may be distinguished from other folk narratives such as legends (which generally involve belief in the veracity of the events described)[1] and explicitly moral tales, including beast fables. In less technical contexts, the term is also used to describe
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Subsidiary of Bank of America), Lehman Brothers and Bear Steams (sold to JPMorgan Chase) were the world top five investment banks in United States. They were the key players in the financial markets and make significant contribution to the economics. But when they failed, the consequences would also be extremely fatal. The 158 years old Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy on Sunday 1:45am, September 15, 2008 (“Wikipedia: Lehman Brothers”, July 15, 2013). With a total assets
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Effect of US Financial Crisis on India Lehman Brothers is no more. Merrill Lynch has gone down the Bank of America maw. AIG too could go belly up. With a doubt, these developments in America are the most shocking events to have hit global financial markets. So where did it all begin? And what does it mean for the Indian stock markets? Find out. . . What is (or was) Lehman Brothers? America's fourth-largest investment bank Lehman Brothers Holdings Inc has filed the biggest bankruptcy petition
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OUTLINE Introduction 1 About the Community 1 Current Situation 1 The Project 1 Main Benefits 2 Conclusion 2 Bibliography 3 Dear neighbours, dear friends. Have you ever thought how many things in our life we take for granted? The thing unfortunately most often taken for granted is our own health and wellbeing. Why does it take finding out that somebody close to us has heart problems or cancer to get us to appreciate that we are still healthy? Every day we are passing The Royal London
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