Pavlo: The Forensic Accounting And Fraud Case
And the Fraud Continues
Tiketa Heard
Strayer University
Forensic Accounting & Fraud Examination
ACC571
Professor Timothy Brown
[pic]
1.) Discuss the Internal control weaknesses that existed at MCI that contributed to the commission of this fraud: MCI biggest internal control weaknesses at was Pavlo. Pavlo was able to manipulate MCI account receivable system which he helped to create and develop. When the same employee is able to receive and update payments, the chance of manipulation and embezzlement of funds is very high. By one person being able to record accounts receivable, or even reconcile the company 's bank account, he/she may be able to embezzle money from the company. This is what happens …show more content…
Pavlo often engaged the accounts receivable department in a practice known as accounts receivable lapping, posting payments received from one customer to another’s account to make overdue accounts appear current, in order to meet corporate bad debt expense goals (Pavlo Jr. and Weinberg 101). MCI’s management encouraged and rewarded Pavlo for accounts receivable lapping and many other inventive and extremely illegal acts that helped MCI reach its projected financial numbers. MCI’s flagrant desire to illegally hide its bad debt gave Pavlo the opportunity to conceal the accounts receivable he was thieving within the constant myriad of lies that constituted MCI’s financial department (Wells, 2012).He was involved in asset Misappropriation: Asset misappropriation schemes are frauds in which the perpetrator steals or misuses an organization’s resources. Common examples of asset misappropriation include false invoicing, payroll fraud, and skimming (Kranacher, Riley, and Wells, …show more content…
They are reinforced for crime, they learn beliefs that are favorable to crime, and they are exposed to criminal models. As a consequence, they come to view crime as something that is desirable or at least justifiable in certain situations. The primary version of social learning theory in criminology is that of Ronald Akers and the[pic] description that follows draws heavily on his work. Akers 's theory, in turn, represents an elaboration of Edwin Sutherland 's differential association theory. The Sociological school of crime causation defines that social disorganization is a major factor in criminal behaviors. Specifically the Sociological Theories theorize that the impact of individuals with the surroundings, groups, and social environment can dictate criminal behavior. Under this school of crime causation crime can be the growth of subgroup relationships (McMullen,
Tiketa Heard
Strayer University
Forensic Accounting & Fraud Examination
ACC571
Professor Timothy Brown
[pic]
1.) Discuss the Internal control weaknesses that existed at MCI that contributed to the commission of this fraud: MCI biggest internal control weaknesses at was Pavlo. Pavlo was able to manipulate MCI account receivable system which he helped to create and develop. When the same employee is able to receive and update payments, the chance of manipulation and embezzlement of funds is very high. By one person being able to record accounts receivable, or even reconcile the company 's bank account, he/she may be able to embezzle money from the company. This is what happens …show more content…
Pavlo often engaged the accounts receivable department in a practice known as accounts receivable lapping, posting payments received from one customer to another’s account to make overdue accounts appear current, in order to meet corporate bad debt expense goals (Pavlo Jr. and Weinberg 101). MCI’s management encouraged and rewarded Pavlo for accounts receivable lapping and many other inventive and extremely illegal acts that helped MCI reach its projected financial numbers. MCI’s flagrant desire to illegally hide its bad debt gave Pavlo the opportunity to conceal the accounts receivable he was thieving within the constant myriad of lies that constituted MCI’s financial department (Wells, 2012).He was involved in asset Misappropriation: Asset misappropriation schemes are frauds in which the perpetrator steals or misuses an organization’s resources. Common examples of asset misappropriation include false invoicing, payroll fraud, and skimming (Kranacher, Riley, and Wells, …show more content…
They are reinforced for crime, they learn beliefs that are favorable to crime, and they are exposed to criminal models. As a consequence, they come to view crime as something that is desirable or at least justifiable in certain situations. The primary version of social learning theory in criminology is that of Ronald Akers and the[pic] description that follows draws heavily on his work. Akers 's theory, in turn, represents an elaboration of Edwin Sutherland 's differential association theory. The Sociological school of crime causation defines that social disorganization is a major factor in criminal behaviors. Specifically the Sociological Theories theorize that the impact of individuals with the surroundings, groups, and social environment can dictate criminal behavior. Under this school of crime causation crime can be the growth of subgroup relationships (McMullen,