Case Study 2 Example | Topics and Well Written Essays - 500 words - 4

2 - Case Study Example Segregation of tasks is required to evade obvious prospects for fraud and quality control (Zhang, 2012). First, for ideal internal control, the purchasing representative or agent should approve the payment nor receive the goods. If these tasks are not separated, an agent can purchase goods and have them transported to their home. Or a purchasing representative can spend so much on purchases, accept the payment, and divide the surplus with the supplier. To evade these issues, companies divide the following tasks among various workers: receiving goods, purchasing goods, and accepting and recompensing for goods (Zhang, 2012). In addition, no transaction should be administered without the specific or general approval of the management. The larger the transaction or deal, the more particular the approval it must have. After all, we are dealing with diamonds, not bolt and nuts. Companies effect most payments by EFT (electronic funds transfer) or check (Zhang, 2012). As we have witnessed, a company requires proper separation of tasks between operations and authorizing EFTs or writing checks for payment of cash. Payment by EFT or check is a crucial internal control, as below: Possible problem: The problem emerges in the absence of a chosen interim supervisor while Rachael is away. The senior executives are taking it on themselves to control while she is away, this seems to be creating performance problems at the architectural company (Fieldmann, 2014). Rachael should assign a high-ranking architect as the interim boss while she is out. The supervisor would be in charge of all the activities that take place in the firm till the return of Rachael. Equally, the other senior architects need to focus on generating architectural drawings. It is proven that the company does not operate well because two architects have self-assigned themselves as â€Å"in control,† but they neglect