Rita Crundwell

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Approval of all the projects related to the corporation needs the approval of both the mayor and the assigned employee. In this way, the mayor can always keep a check on the projects that will be approved. This can reduce the opportunity to create fake project invoices.

Following the cash flows also could have tracked down the fake account created (RSCDA) and also monthly statements of all the bank accounts created with respect to the corporation have to be sent to the mayor. In this way, the cash flows will always be under proper surveillance.

Internal control:

A person should be assigned with the only duty of oversight on all the daily activities that will be taking place. In this way, there is a check on the activities that are being carried out.

Employees holding position under Rita, like the clerks, receptionist, might have had an intuition of the fraudulent situation in the office. A special system has to be created to encourage these employees to disclose any possible situation or incident of fraud.

Checks should be made to a specific person or firm. Payee's name has to be mentioned in order to eliminate the scope for any fraud due to improper documentation.

For checks or payment above a minimum set amount must require the signatories of two city employees.

Bank schemes:

The bank must need compulsory signatories of two authorized government employees to open an account in the name of a state corporation. This can keep a check on the credibility of the bank account. Also the bank has to send monthly bank balances, to the mayor, which comprises of all the transactions related to the corporation.