Problems in the Packers Pro Shop
This critical incident deals with a situation involving employee thefts at the Packers Pro Shop in Green Bay, Wisconsin. The story focuses on the identification and investigation of the thefts from the perspective of the store manager, Derek Dimmer. Two employees independently processed transactions that involved the fraudulent return of merchandise. At the conclusion of the investigation, Dimmer must evaluate the current internal control structure of the organization and identify steps to be taken to improve the structure and improve the Pro Shop’s ability to prevent fraud of this nature from occurring again in the future.
In completing this assignment, students should be able to:
1. Describe the fraud triangle and apply it to an incident. (LO 1)
2. Identify internal control weaknesses in a business. (LO 2)
3. Design preventative and detective internal controls to address the identified internal control weaknesses in a business. (LO 3)
4. Identify the relevant management assertions related to the inventory account. (LO 4)
5. Design audit tests to discover the internal control weaknesses at a client. (LO 5)