Case Summarizing
The case of Trolley Dodgers is an excellent example of a long-term process that caused significant insecurities within the organization. The Dodgers basketball team includes 400 workers and has many tasks to do. Among these employees was the team’s primary accountant, Edward Campos. According to Knapp (2022), the entire team was entirely sure regarding the trustworthiness of this person since he had worked for an extended period and made specific contributions (Knapp, 2022).
However, this misinterpretation led to an adverse outcome, which is the major fraudulence that Campos did. Mainly, he used his position to create a scheme which allowed him to earn money. Notably, as Knapp (2022) states, “Campos padded the Dodger’s payroll by adding fictitious employees to various departments in the organization” (p. 10).
Consequently, he was able to manage workers’ payments and take a considerable amount of money for himself. After some period, his scheme was unveiled, and an appropriate penalty, which was eight years in prison and the necessity of refunding, was made. In addition, other people participating in the fraudulence were sentenced to prison or were given a probation period.
Five Methods to Implement
Diversification in Management
In this case, the first method for preventing fraud is creating diversification in the organization’s management. One of the main reasons this fraudulence was possible is that all sources and tools were concentrated in the hands of Edward Campos. Therefore, as a benefit of this method, having multiple accountants and financial managers will help the team avoid such cases. The costs will not be high if one differentiates managers’ tasks appropriately, so it will not be needed in many accountants but in just a few.
Enhancing Payment System Security
Second, the security of the payment system must be improved. As a benefit, this simple step will allow the organization to be sure that a single person cannot access control mechanisms of payment schemes. In addition, it will not require significant spending because only one setting of the new security system will construct fewer opportunities for fraudulence.
Revising Employee Tasks
Third, establishing constant revisions of workers’ tasks and how they approach them will help to find specific peculiarities of their work. It will help to determine fraudulence at the beginning and eliminate significant adverse outcomes for the organization. As for the costs of this method, one should mention that it is the most inexpensive approach due to the absence of additional equipment or employees.
Implementing Workers’ Verification
Fourth, establishing workers’ verification will be helpful in this case. As the primary benefit, it will create a fixation system in which employees have authorized and conducted specific actions. However, this method will require additional costs because of the software needed.
Creating a Positive Working Environment
In the end, the fifth approach to avoid fraudulence is creating a qualitative working environment where all workers will be aware of ethics and have an opportunity to move forward in a career. The primary benefit of this issue is to assure workers of sustainable and appropriate salaries and not to allow them to be in the same position for too long. Despite the need for restructuring the organization to increase workers’ salaries, this method can be cheap to implement due to the future benefits.
Method Comparison
While comparing these methods, one should state that they differ in the cost of implementing them. Therefore, it is crucial to evaluate their rationale according to spending. In addition, the comparison can be drawn by the purpose of each approach, which can be to differentiate the organization’s structure, to improve security software, or to establish auditions. However, as the primary contrast among the five methods, it is essential to state the need for new technologies and employees for some of them and the opportunity to improve the existing personnel for others.
Reference
Knapp, M. C. (2022). Contemporary auditing cases. Cengage.
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