Smart Trading Incorporate Private Company Setondary shyle Sm

Smart Trading Incorporate- Private Company Setondary shyle Smart Trading Incorporated (STI), is a subsidiary of Elegance. STI is a securities trading firm specializing in debt and equity securities transactions mostly traded on the NASDAQ. STI is listed on NASDAQ. Also, at the request of their customers, STI will charge a fee to receive or place money transfers from or to accounts all over the world. The minimum fee is $10 for buying or selling stock and $25 for money transfers. The maximum fee is $500,000 for stock transactions and 2% for money transfers. A minimum fee of $100 is also charged for

Solution

1 Petty cash misappropriation:

Step-1 Internal control weakness identified:

Step-2: Recommended internal control:

2. Employee in payable maintains accounts payable subsidiary ledger:

   Step-1: Internal control weakness identified:

Step-2: Recommended internal control:

3.Identification of hackers:

Step-1: Internal control strengths noted:

4.Identification of mails sent by unauthorised personnel.

Step-1: Internal control strength identified:

5.Wrong posting to another account number:

Step-1: Internal control weakness identified:

Step-2: Recommended internal control:

6.Payroll processing:

Step-1: Internal control weakness identified:

Step-2: Recommended internal control:

7. Intruder in the company’s information systems:

Step-1: Internal control weakness identified and recommended controls:

8.Leakage of customer information:

Step-1: Internal control weakness identified and recommended controls:

9.Installing of outsider’s network in company premises:

Step-1: Internal control weakness identified and recommended controls:

10.Fictitious invoice or duplicate invoices:

11. Sexual harassment:

Step-1: Process lapse and recommendation to be implemented: