Question

A major Australian Public Company ran promotions advertising for a number of its products through
a promotions company. The promotions company falsely inflated the number of responses it
received from purchasers of the company’s product. The false number of respondents was invoiced
by the promotions company to the public company resulting in the overpayment of thousands of
dollars. The records kept by the promotions company were those on its computer database as well
as manual batch numbers of responses to the promotions.
REQUIRED
Identify five (5) procedures and checks that would have reduced the risk to the victim company?

Answer 1

Answer:

Explanation:

These frauds could have been looked down into according to the following practical ways.

1) Each consumer buying the product due to promotions should have been given a code, through which when they buy they automatically gets registered in the main company's system.

2) Audit could have been performed from the beginning itself and the victim company could have assigned a team for this purpose.

3) Agreements pertaining to the compensation due to these frauds should have strict punishments included in them.

4) The manual batch numbers should have taken and sent as feedback to the customers. Hence if even one feedback has negative response a search could have been performed to take out the rest.

5) Regular checks.