FIN3703
CORPORATE TREASURY MANAGEMENT
ASSIGNEMNT 02 SEMESTER 1 2023
QUESTION 1
1.1. The CEO asked you to advise him whether this type of fraud committed at farm
trust was possible with Parmalat given the way the company manages its
finances.
Agree- It was possible.
There was no segregation of duties.
• The bookkeeper performs the major responsibilities include opening bank accounts,
entering transactions on the systems, verifying and authorising transactions for settlement.
• Segregation of duties is a key management control procedure intended to reduce the risk
of fraud and to promptly identify errors.
CORPORATE TREASURY MANAGEMENT
ASSIGNEMNT 02 SEMESTER 1 2023
QUESTION 1
1.1. The CEO asked you to advise him whether this type of fraud committed at farm
trust was possible with Parmalat given the way the company manages its
finances.
Agree- It was possible.
There was no segregation of duties.
• The bookkeeper performs the major responsibilities include opening bank accounts,
entering transactions on the systems, verifying and authorising transactions for settlement.
• Segregation of duties is a key management control procedure intended to reduce the risk
of fraud and to promptly identify errors.
