One of the most famous fraud cases involving a nonprofit took place in California, where employees of Goodwill Industries stole merchandise from the organization and sold it. Over more than twenty years, the employees stole more than 25 million in merchandise

This case study is another exercise in Critical Thinking & Analysis. Your response must be a “minimum 2 full-page” response.

According to COSO, effective internal controls include five components that amount to Good Management 101:

They control the environment through strong leadership
They conduct risk assessments on a regular basis
They create an information and communication system that keeps the organization’s members informed of internal control standards.
They create policies and procedures that help to control the organization’s activities
They create monitoring as a continuous process
Respond to the Case Study Goodwill (14.3) Weikart. Define and discuss the concern within this nonprofit by responding to this case. What policies and procedures would you put in place to resolve and prevent this type of fraud and loss from happening again? In detail, implement the following (4) elements of Control factors in your response:

1. Personnel Control System (separation of duties, independent check, and bonding of personnel.)

2. Physical Controls…not limited to risk management

3. Controlling cash and its equivalents and reconciliation of bank accounts

4. Describe what a ‘culture of accountability & transparency’ would look like for this organization

Case Study: One of the most famous fraud cases involving a nonprofit took place in California, where employees of Goodwill Industries stole merchandise from the organization and sold it. Over more than twenty years, the employees stole more than 25 million in merchandise. The chief executive of the Goodwill branch was involved in the thefts and had opened bank accounts in Switzerland to hide the stole money? What internal control policies would have prevented such fraud?