1. Part of avoiding fraud is to create a positive

1. Part of avoiding fraud is to create a positive work environment. Describe a few conditions mentioned within the case that could contribute to a poor work environment.

2. What symptoms should an auditor look for to determine if fraud is occurring within the retention department?

3. There are five primary control procedures or activities. List and explain which two procedures you feel would be most effective in improving the control system of the retention department. Include in your explanation specific examples of controls that should be implemented.

ABC satellite, a satellite television company, sells satellite television service contracts to customers, usually for a 24-month period. ABC satellite is a fast-growing, high-paced company created by aggressive salesmen. The company’s success has made its owners very wealthy, many of them live a lavish lifestyle and drive luxury cars to work. The retention division of this company is responsible for contacting customers nearing the end of their contract and convincing the customer to renew their contract. Retention agents are paid a commission for each account that agrees to a new contract. The commission rate is considered by many employees to be below the industry standard. Over the past year, the retention division has undergone significant supervisor and manager turnover. The current manager has not had sufficient time or understanding to properly implement controls. Additionally , the new manager has been so busy playing catch up that he has yet to hold a training or orientation meeting for his department. The current process for paying commissions t o retention agents on renewed accounts is as follows:

The phone system records the verbal contract extension commitment. The retention agent attaches the audio recording to the customer’s account in the ABC customer contract system (CCS); this acts a legal proof of contract. The retention agent then updates the customer contract date information in CCS. Each retention agent has a spreadsheet he or she uses to keep track of the account renewals for the month. The retention agent records the customer #, date of contract extension, and length of contract extension in his or her spreadsheet. At the end of each month the retention supervisor receives each agent’s spreadsheet and multiplies the total retention renewals submitted by the agent by his or her commission rate in order to calculate the total monthly commission.

The spreadsheets are not maintained by the supervisors. In order to get the payments processed quickly, the supervisors have less than four hours to receive all agents’ spreadsheets (usually each supervisor is responsible for 20+ agents) and submit the summary file to payroll. The supervisor records the total commission earned by each agent o n a summarized spreadsheet, which is sent directly to payroll for payment.

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.