Please find an example of a fraud case from within the past 10 years related to
ID: 2651805 • Letter: P
Question
Please find an example of a fraud case from within the past 10 years related to the production cycle. This can be in a large or small business. In order to receive full credit for this participation requirement, you must include a full description of the fraud that took place. You should explain how it is an example of a fraud related to the production process, how the fraud could have prevented and detected.
Please do not just give the definition or cut and paste about the production cycle. I need help finding an actual fraud case that has occured with an actual company
Explanation / Answer
Here is the example related to the production cycle
Production Cycle is the phase i.e. the time period during which an a product is converted into finished good.
Mr. X was responsible for accounting the inventories and goods produced to the senior management in ABC Ltd. He looks after labour and also guides them. As there was no other person responsible for the same, the whole control was in the hands of Mr. x. ,10,000 units were produced during the month of April but he showed that only 9800 have been produced. He theft 200 units as there were no proper control over the inventory.
This fraud can be prevented and detected if the someoneelse is hired to check the accounting process of Mr. X and proper cameras and securities are there to look over the inventory, to look that no inventory has been taken out of the godown without the prior permission of the senior Manager.