Fraudulent Activities Within Tallahassee Bean Counters

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Tallahassee Bean Counters has never been audited, therefore, giving employees the freedom to commit frauds without fear of being caught. The recent letter that Franklin Kennedy received from an unknown person indicating that there might be some fraudulent activities that are going on, coupled with the lack of whistleblowing channels prompts an audit to be carried out to ascertain whether the rumors are true. It is therefore important to carry out an audit of the activities of the club to highlight areas where fraudulent activities can take place, people who are most likely to be fraudulent, and also get to know where the control systems are weak.

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There are several areas where one can raise red flags concerning the operations that are carried out in a manner that increases the probability of frauds occurring. Since Julie took over manning the concessions store inventory started going low and, though nothing was missed, questions arise as to why the inventories are low compared to previous times. Similarly, the recently completed project should also be looked into, as it was a one-man’s show.

The bidding process for awarding the construction contract also raises eyebrows since the bids were kept in Phil’s office who was to be the overseer of the project thus, he could have had a vested interest in the bidding process. Purchase of equipment raises eyebrows because no specific person orders for the equipment between Sam and tucker, and the process of getting the right vendor is not open. After all, Ben just chooses which vendor will supply.

At the parking lot, it is discovered that workers are expected to receive money from clients and place tickets under the windshield wiper, but there is nobody to ensure that the right tickets are placed there if they are issued at all. The people issuing the tickets can easily receive money for a larger vehicle and issue a receipt for smaller vehicles or go without placing the receipt at all. One hour into the game, the parking people leave and there is no system in place to account for vehicles that arrive thereafter.

Furthermore, the collection of the timesheets from various departments, the calculation of the time worked, and the amount due to each employee per month is done by Candace Larson, and the only thing done by ADC is just disbursement of the money. The reason for hiring ADC is questionable since what they are doing can easily be done by internal staff without necessarily involving help from outside. On the other hand, apart from the supervisors who sign on the worksheets no other person confirms the details of the worksheet, and the workers can easily collude with the supervisors to increase their earnings.

The specific number of programs purchased is not taken into account at the beginning of the season, while inventory at the end of every game is not taken. This decides the specific number of programs sold during each game difficult. Ben and Candice divide the number of tickets issued by the selling price to get the number of programs sold, which means they use salespeople’s information, salespeople may fail to issue receipts for some programs and keep the money received.

On top of that, it can be noted that Phil Ackers conducts all the promotions almost alone and simply brings the revenue to Michele, hence posing a great risk that all the money collected might not be accounted for. On top of that, Phil just brings the receipts of expenses for payment, and their authenticity is not confirmed yet, he can easily collude with the supplier given that he uses the same suppliers each time.

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In the ticket booth, the women who work there have been working together for 20years and their husbands attend each game, but it is not clear whether they pay for the tickets. There is a possibility that the women have devised a way that their husbands, and probably some of their friends, enter without paying for the tickets. On top of that, attendance is just guesswork that is done solely depending on the number of tickets sold at the gate, yet nobody ensures that each person is issued with a ticket. It is possible that some clients are not issued with tickets.

It is noted that Phil, Ben and Michele are the only ones responsible for collecting and depositing money always, which is risky for they can collude having worked together for a long time. In conjunction with that, the sales for September exceed the sales of June while the sales tax for September is less than that of June which does not seem right. Accounts receivable have also been increasing since Julie took over and this can be fraud being committed.

Many people have the ability and opportunity of committing fraud in the team. Phil Ackers comes out as a person with a greater likelihood of having fraudulent activities given that the management of the team is entirely left in his care. He organizes fundraising activities and nobody oversees how he carries out his work. The recent hiring of his niece as his assistant also raises more questions than answers coupled with the fact that Julie his niece, has taken over more duties than she is supposed to. Julie has also taken over the concessions inventory which she does periodically increasing the risk of fraud while the accounts receivables, a role she also took over, have been increasing.

On the same note, Sam McCarty is hired by Tucker Johnson to help him with the paperwork which Johnson has a phobia of. McCarty maintains inventory for equipment, orders for equipment, and receives the equipment when they arrive without anybody supervising him. Given that his salary is not that good and there is a possibility of him ordering more than required or manipulating the inventories without being discovered, chances are that he will want to make extra income by forging the documents.

Ben Hill raises suspicion on the way he conducts his private life where it is revealed that he is a partying man who likes fancy dressing. On top of that, Ben oversees the collection of revenue from almost all revenue-earning activities of the team and keeps the same in his office before depositing is done. His fancy lifestyle requires high spending and he has access to the company money therefore, he may be tempted to play foul. Besides, it is Ben who chooses which vendor will supply equipment after receiving orders from either Sam McCarty or Tucker Johnson and he can easily collude with the vendors to hike prices.

When counter-checking cash at hand with the amount in the register, another person other than the ones who collected the money should be present, but when Holy Hope and other workers are doing this nobody is present to oversee them. They can collude and eliminate any evidence that may be available. In conjunction with that, the selling of game tickets is left to different people at the same time instead of harmonizing them, which creates a lot of leeways for fraud perpetration.

Some systems control weaknesses can be observed. Employees should be alternated to various workstations to increase productivity and decrease chances of collusion, but Myrna Myers and the three women have been working together for the last 20 years. Additionally, there is overlapping of roles as equipment ordering is done by either Tucker or McCarty and nobody recognizes or questions this.

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Financial statements for the previous year are required for comparison together with the balance sheet since they can give an insight into the trends of revenue and expenses. Expenditure invoices and bills will also be of great help in ascertaining the expenses in the journals.

Tallahassee Bean Counters has got many openings for fraudulent activities to take place; therefore, a regular audit is required to minimize the frauds that may be taking place. Furthermore, ADC has a negligible role in the team yet it is paid for duties that can be done internally therefore, it is important if the ownership of ADC is checked to know if there are any links with any of the managers. Financial matters in any firm require care and accountability which should be the case in TBC.

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BusinessEssay. (2022, April 29). Fraudulent Activities Within Tallahassee Bean Counters. Retrieved from https://business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/

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BusinessEssay. (2022, April 29). Fraudulent Activities Within Tallahassee Bean Counters. https://business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/

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"Fraudulent Activities Within Tallahassee Bean Counters." BusinessEssay, 29 Apr. 2022, business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/.

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BusinessEssay. (2022) 'Fraudulent Activities Within Tallahassee Bean Counters'. 29 April.

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BusinessEssay. 2022. "Fraudulent Activities Within Tallahassee Bean Counters." April 29, 2022. https://business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/.

1. BusinessEssay. "Fraudulent Activities Within Tallahassee Bean Counters." April 29, 2022. https://business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/.


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BusinessEssay. "Fraudulent Activities Within Tallahassee Bean Counters." April 29, 2022. https://business-essay.com/fraudulent-activities-within-tallahassee-bean-counters/.