Brazos Manufacturing Case Study

Introduction
The vice presidents of Brazos Manufacturing, Inc. had needed to cut down on their budgets. The company was a $550 million automotive parts supply company. Troy Sozuko had been with BMI for the past 30 years and was the highest-ranking officer in North America. Jack was the controller of the multi-million-dollar company. Then one day Troy came to Jack and asked him to change his W-2 form intentionally to show that he used his car for personal use. Jack understood that this was a really sensitive situation and needed to be handled carefully. He really took his job seriously and knew that his name on company documents meant that was aware of the company procedure but approved of the fraud if he did it.
Upon researching the expense
Most companies probably have numerous difficulties they try to sustain but they are most likely one that they will never see coming, which is fraud. There are a few great implementations of some internal control modifications that may benefit Brazos Manufacturing, Inc. for future fraud problems.
One great key component of internal controls that the company could add or make better would be random spot checking. According to Michelle Long, an Advanced Certified QuickBooks ProAdvisor, She believed that there are some items such as monthly financial reports that should definitely be reviewed on a consistent basis. She also thought management should also choose other reports and documentation to spot check” (Long, 2009).If Brazos Manufacturing, Inc. had Radom spot checking done on some of the fraudulent documents they may have maybe a majority of this before it had become such a serious case. Also, maybe if Troy knew that there was a chance that he may be found out by random spot checking maybe this fraud would have never occurred in the first
According to the article written by Castellano the phrase “tone at the top” easily relates to this case. It relates really well when it says that when the CEOs will need to carefully check the data to assure that the statements are accurate, and that they must also give considerable thought to the corporate culture they create (CASTELLANO, 2004). I believe that this will, in fact, impact the company a bit more. It may be a bad example since an executive vice president did do the fraud in this case, but overall when a company’s management follows their own internal controls, it sends a strong message to all of its employees about the importance of internal controls. Now when the president did request the involvement of the North American Ethics Committee and asked the company human resource attorney to be involved in this meeting, by doing this he showed his employees now one is above the law, even executive vice