The Dude Case Study

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1. Symptoms of fraud mainly include his extravagant lifestyle, manly his trading in his old card for several very expensive, high end cars and motorcycles. Daniel Jones also purchased several expensive accessories for both him and his wife which cost more than the average amount he’d have in his bank at any given time. Over the course of a year, his perceived wealth has changed drastically, and increasing by such a large amount In a short time is suspicious without a job change/promotion.  
   Weak internal control given they can order unlimited software/hardware and they don’t need to have authorisation if the purchase is < $1,000.
   Analytical anomaly in that one person is ordering a large amount of software, far more than one can be expected to need.
2. This would have a positive effect if the minimum purchase amount without the authorisation requirement was decreased as the managers would notice when one employee was purchasing an excessive amount of software for ‘employees’.
   The downside is that it makes it easier for the managers/vice president to commit fraud. As the monitors have more freedom and they are not being monitored themselves.
3. Given that he spent $12,000 on jewellery, one might gather that he received pressure from his wife or mistress to earn more money to buy them more expensive gifts. His image as well, wanting to be seen as someone who wanted to be seen as rich by his neighbours. He could be considered under financial pressure as he only had an average of around $2,000 in his account at any given time.
   The opportunity was clear as there were very poor internal controls regarding the lack of supervision for purchases under $1000, no matter the quantity, or how much the separate purchases added up altogether.
4. The company could require employees to submit a formal request for software and hardware they need for business purposes, which would need to be approved by a manager no matter how much the software costs. The company should also place a limit on how many times they can order software/hardware each month/year.