ACC 557 Discussions

Week 5 Discussions:

1.       From the e-Activity, analyze the situation from the company you selected and the internal controls that may have been compromised to allow the problem to occur and the resulting financial impact to the business. Propose a plan to prevent this type of situation in the future.

Match the situation with the primary components of the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it and specifically create strategies to address this component of the triangle to prevent recurrence for the above-mentioned company.

2.       Assess the external and internal factors that influence credit policy and decision making  within a company that extends credit to its customer when providing a good or service on account. Indicate the factor of most significance in today’s business environment. Provide support for your rationale.

Assuming that a certain percentage of customers will be deemed high risk, recommend a strategy to minimize a company’s bad debt exposure. Indicate how the company would implement the strategy. Provide support for your recommendation.