Details

Case

Educator Copy

Bright Stars

Ayesha Bhatti


INDUSTRY : Entertainment, Toys

AREA : Finance

ORGANIZATION : Bright Stars

LENGTH : 4

LUMS No : 02-631-2015-1

PUBLICATION YEAR : 2015

DESCRIPTION

KEYWORDS:

Bright Stars Pakistan,Background,Non-Governmental Organisation,NGO,Education,Health,Company Background,Donations,Dilemma,Organogram,Income Statement


DESCRIPTION:

Mr. Qureshi is the Vice President and head of finance for Bright Stars. He has been personally involved with almost every aspect of the organisation. Bright Stars is an institution which provides education and training to special needs children in Karachi. It came into existence in the early 1980s and has grown rapidly with donations exceeding Rs. 60 million in the financial year 2013. Mr Qureshi knows every part of the organisation in detail and has been involved in developing the systems and procedures which have contributed to its reputation as a reliable and well controlled organisation. The individual donor base that makes regular monthly contributions has gradually reached over 1,800 based purely on the trust and goodwill of the senior management. Then how could a misappropriation have taken place in such a well-controlled organisation with hands on senior personnel and experienced and trusted staff? The case, although brief, illustrates a misappropriation in the department which is responsible for the collection of incoming donation cheques.


LEARNING OBJECTIVES:

1) Understand/distinguish between the characteristics of fraud and error. 2) Appreciate the features of a strong internal control system and identify the weaknesses. 3) Understand the application of the fraud triangle to employee frauds. 4)Describe the steps in investigating fraud.


SUBJECTS COVERED:

Finance