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I am writing the memo. I have to identify the specific element of the COSO flamework and how
property implementing this element could have prevented or detected the fraud perpetrated at the
company. The incident was
The accounting manager and his co-worker logged on as another to get work done. This allowed
the accounting manager to request checks under one identity and then approve them under his
account.
I thought this is the control activity component, and they need to give each employee their own
password to access the computer to prevent the fraud.
I am not sure if this is control activity or information and communication. Please help me.
Thanks.
Solution
This is surely a element of control activity whereby one person password is known to another
and the other person is able to make unauthorised transaction through login of other person. The
company should specifically design it's control procedure so that the same type of activity is not
repeated in near future also.

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I am writing the memo. I have to identify the specific element of th.pdf

  • 1. I am writing the memo. I have to identify the specific element of the COSO flamework and how property implementing this element could have prevented or detected the fraud perpetrated at the company. The incident was The accounting manager and his co-worker logged on as another to get work done. This allowed the accounting manager to request checks under one identity and then approve them under his account. I thought this is the control activity component, and they need to give each employee their own password to access the computer to prevent the fraud. I am not sure if this is control activity or information and communication. Please help me. Thanks. Solution This is surely a element of control activity whereby one person password is known to another and the other person is able to make unauthorised transaction through login of other person. The company should specifically design it's control procedure so that the same type of activity is not repeated in near future also.