Internal Controls At Sanchou

Proper Authorization of Transactions and Activities
This section describes the issue of puritanical authorization of transactions and activities. This virtuoso ensures that transactions and activities are carried turn forth by individuals who act within a pre-determined eye socket of authority. The pre-determined scope of authority would make clear to employees what their role, privilege and span of chasten is in relation to a specific action. The goal is to interrupt un current and fraudulent transactions from occurring. This principal works in tandem with strong role separation and independent checking procedures.
The Sanchou College racing shell demonstrates multiple violations of the authorization principal. One simple example is the pick appear absence of any individuals assuming the responsibility of asset custody. This happening is closely related to the principal of independent checks. It relates to the authorization principal simply on the basis that no person has be authorized and assigned a role to carry out a needed action. A more significant and intelligibly defined violation of the authorization principal is described by the actions of common topaz subgenus Chen. Chen was an evening school staff atom who was discovered to be in possession of five seals of educatees who had withdrawn, unity of which was deceased.



This discovery was made after Chen had requested a TWD 50,000 refund on behalf of the students.
The actions of Tan Chen demonstrate the danger of improper authorization. Tan Chen was in possession of student seals which are designed to ensure a transaction is authorized by the parties the transaction concerns. By using the seals of the students to carry out transactions which could only be authorized by the students themselves, Tan Chen was given the opportunity to embezzle money. In short, Chen violated his role, privilege, and span- of control.
How could this situation be prevented from occurring in the future? perchance the use of seals as a form of authorization of a transaction...If you want to get a full essay, order it on our website: Orderessay



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