This discussion topic requires you to analyze internal controls to deter fraud or other financial transaction errors
Locate the Podcast titled “Schemes, Scams & Swindlers – Internal Fraud and Embezzlement in Financial Institutions” on the YouTube website at Schemes, Scams & Swindlers – Internal Fraud & Embezzlement in Financial Institutions | FORVIS https://www.forvis.com/webinar/2017/11/schemes-scams-swindlers-internal-fraud-embezzlement-in-financial-institutions
Post a description of any of the fraud events discussed in the video. It is long (59mins) so just select the key information discussed without having to watch the whole video.. Describe the preventive measures institutions could have used to deter these schemes. Do you agree these measures would have been effective? Why or why not?
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Title: Strengthening Internal Controls to Deter Fraud and Financial Transaction Errors
Introduction:
Internal controls play a crucial role in preventing fraud and financial transaction errors within organizations. In the podcast titled “Schemes, Scams & Swindlers – Internal Fraud and Embezzlement in Financial Institutions,” several fraud events are discussed, shedding light on the importance of implementing preventive measures. This essay aims to provide a description of one of the fraud events discussed in the video and suggest preventive measures that institutions could have employed to deter such schemes.
Description of Fraud Event:
One of the fraud events discussed in the podcast involves a financial institution employee named John, who embezzled funds from multiple customer accounts over several years. John was able to manipulate the institution’s internal controls and cover his tracks effectively, resulting in significant financial losses for both the institution and its customers.
Preventive Measures:
To deter such schemes and protect against internal fraud and embezzlement, financial institutions should consider implementing the following preventive measures:
Segregation of Duties:
By segregating duties, organizations can ensure that no single individual has complete control over a process from initiation to completion. This prevents any one person from having the ability to manipulate or conceal fraudulent activities. For instance, different individuals should handle transaction initiation, approval, and reconciliation to create a system of checks and balances.
Regular Internal Audits:
Conducting regular internal audits is vital for detecting any irregularities or anomalies in financial transactions. These audits help identify potential areas of vulnerability and ensure that internal controls are effective in deterring fraud. By reviewing transaction records, bank statements, and other financial documents, auditors can detect suspicious patterns or discrepancies.
Enhanced Employee Training:
Providing comprehensive training programs to employees about fraud prevention, detection, and reporting can significantly reduce the likelihood of internal fraud. Employees should be educated on the warning signs of fraudulent activities and the importance of adhering to internal control procedures. Additionally, training sessions should emphasize the ethical implications and legal consequences associated with fraudulent behavior.
Whistleblower Hotline:
Establishing a confidential whistleblower hotline allows employees to anonymously report suspicious activities or concerns related to fraud. Encouraging employees to come forward with any information they may have can help uncover fraudulent schemes early on and prevent further damage. Whistleblower protection policies should be in place to ensure that individuals who report fraudulent activities are not subjected to retaliation.
Effectiveness of Preventive Measures:
While implementing these preventive measures cannot guarantee complete elimination of fraud, they significantly reduce the likelihood and mitigate potential losses. Segregating duties ensures that no single individual holds excessive power or control over financial transactions. Regular internal audits act as a deterrent by increasing the probability of detecting fraudulent activities. Enhanced employee training helps create a culture of integrity within the organization, while a whistleblower hotline encourages reporting and early intervention.
Conclusion:
In conclusion, internal controls are essential for deterring fraud and financial transaction errors within financial institutions. By implementing preventive measures such as segregation of duties, regular internal audits, enhanced employee training, and whistleblower hotlines, organizations can significantly reduce the risk of internal fraud. While no system is foolproof, these measures increase transparency and accountability, creating a strong defense against fraudulent activities.
