AIM Corporation: A Business Fraud

MEMO
To: Forensic Team Manager
From: ***** student
Subject: Forensic Accounting Investigation
Date: **/**/2022
Statement of issue
The primary purpose of this letter is to provide essential advisory notes to the whole Forensic Accounting department on the present internal issues AIM is experiencing, as identified by the reports of the internal auditors. It is typical for managers in a commercial environment to suffer operational constraints. Therefore, it is predicted that managers will continue to develop adequate techniques for coping with this kind of pressure. Understanding the working environment to which operational managers are exposed is essential for the effective execution of their tasks and obligations.
This memo is required reading for anybody who intends to pursue a career in operations management in the future, since it educates readers with the skills necessary to handle situations of workplace fraud. This helps save time in addressing such difficulties as they emerge, as opposed to spending useful time seeking counsel from other workers, whose reactive actions may even hinder the employees' productivity more. It describes the many frauds challenges an operations manager may experience during his or her duties, the methods for perpetrating these frauds, and the various courses of action managers may take to combat Fraud at work. This memorandum is also valuable to auditors because it defines standards and provides auditors with advice to assist them plan and conduct audits to gain reasonable certainty that business documents and financials free of misstatements that are fraud related. Auditors are obligated ensure all financial records are a true presentation of the current standards in the organization. Considering this, the accounting department of AIM company will find this note useful.
I did see a few warning signs with the AIM Corporation.
Detection of Red Flags
The following red flags and concerns have been detected for AIM company in Task. First, the president of Aim Corporation constantly aims high for their goods. They offer a new product to the market every week. Following their single meeting, he announces the migration of personnel to two distinct areas. His staff are dissatisfied since they must reestablish consumer ties to get their compensation.
The second redflag emanates from the fact that the accountants are constantly receiving illogical tips for billing and conducting rebates. The third redflag stems from the fact that proper work structure mechanisms are not being flowed. Sales personre constantly conducting roles that are meant to be performed by supervisory staff such as the sales manager. These duties include for example when the sales perrson fills out Billing adjustment Form (BAF). This therefore is on of the probable reasons as to why there is constant product mismatch and errors in distribution.
Also, since shipment quantities are submitted to major truck carriers as "shipping loading count reports," the carrier does not often count the order before accepting the merchandise for transportation. Because the shipping department is responsible for precise counting, this is a problem. The final redflag is that Customers who change their minds about a purchase, acquire the wrong product, or obtain the wrong amount are required to contact their salesperson to seek an adjustment. However, the product may be returned to the distribution facility or sold to another client without being returned. This demonstrates that the salesperson establishes the BAF by crediting the original customer's account and debiting the new purchaser's account or inventory, which is a commercial problem.
Evaluation of the red flags flowchart
All the flaws and concerns are rather concerning since they are all red flags, indicating that there is serious risk (Weirich&...