Trust is NOT an Internal Control (Video) (Course Id 2553)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), including CPAs, accountants, and other financial professionals.

• What is this course about or what problem does this course solve?
  The course addresses the problem of employee theft by examining eight real-life cases to highlight the failure of internal controls and management oversight.

• How can the knowledge from this course be used?
  Participants can use the knowledge gained to identify weaknesses in internal controls and implement better fraud prevention strategies within organizations.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It emphasizes the critical role that proper internal controls and management oversight play in preventing fraud, a core concern in auditing and financial reporting.

• When is this course relevant or timely?
  This course is especially timely for professionals reviewing or establishing internal control systems, particularly in light of ongoing corporate fraud incidents.

• How is a course like this consumed or used?
  The course is delivered as a self-study video through the NASBA QAS format and includes review and final exam questions that must be completed online for credit.

This course discusses eight employee theft cases to demonstrate the importance of internal controls and management oversight in the prevention of employee theft. Some of the companies are large and some are small. Some are examined in detail while others are overviewed.

Companies discussed: Sandhog Union, United Probation Officers Association, Ayer Family Trust, Craig Brothers Plumbing and Heating, Pet First Healthcare, Standford Financial Group, Woodruff Arts Center and Fry’s Electronics.

Understanding the motivations and conditions that foster fraudulent behavior is essential for developing effective prevention strategies. A recurring theme in each of these cases is a lack of appropriate internal controls and a lack of management oversight.

Video - NASBA QAS - NASBA Registry - 2553

Course Learning Objectives

• Associate employee theft with inadequate internal controls
• Recognize the importance of management oversight in the prevention of fraud

Chapter 1 - Trust is NOT an Internal Control

Chapter 1 Review Questions

Glossary