For this assignment, you will review the case study “A Clueless Organization.” The fraud case can be accessed below the assignment instructions. This case centers on the fraud that occurred at ABC...

Clueless organisation and lack of management oversight
Introduction;
Banking has huge amount of money and therefore limits and controls are embedded in operation. Despite this, incentive for fraudster to monetise by adopting various fraudulent techniques has unveiled vulnerabilities in banking sector. Operation risk for bank can arise from people, process, internal or external sources. This makes fraudster inclusive of internal employee, external client, customers, etc. This being only one side of the coin, fraud management is interconnected with governance.
Today’s banking operation is not limited to one single unit of traditional deposit and loan. It has expanded to several functions like investment banking, trading desk, portfolio management, depository services, foreign exchange, overseas branch, etc. Such an example is ideal for comprehensive view of “clueless organisation”, fraud accounts, case study and key prompting points for fraud analyst.
Point 1: What “clueless organisation” with perspective of management oversight? And worldwide trend of accounting fraud.
With above introduction, search is started with organisation governance framework which has three line of defence;
1. First line of deference: Actual business unit carrying on banking activities. Here, limits and control are put in place for day to day activities while carrying on operation.
2. Second line of defence: Is independent risk management function who carries out checks, balance, propose policy and recommend reviews. While auditor does verification, risk management provides overview of how risk plan is working and possible areas of improvement.
3. Third line of defence: Role of senior management, board of director and other policy maker stakeholders are engaged in formulating, approval and dissemination of policies and guideline. Decision taken by this governance role and responsibilities, are reflected in culture of company.
A clueless organisation is one where lack of governance framework allow leakage into vulnerabilities. Understanding fraud detection is key to governance policy, reduce bankruptcy and reducing reported cases enterprise wide. But “clueless” bank fails to recognise linkage between “good governance” and development objective.
Net point in research is to reemphasis on management oversight due to lack of governance. Clueless organisation and management oversight go hand, as study published in titled paper “An Investigation of the Influence of the Worldwide Governance and Competitiveness on Accounting Fraud Cases: A Cross-Country Perspective” which brings out accounting fraud cases related measure linked with governance, competitiveness, and other institutional variables.
Number of reported accounting fraud cases in several countries are influence by worldwide governance and other institutional determinants. Again, referring to study which shows world-wide share of reported fraud cases.
Point 2: Review case study of “Wells Fargo”:
In lawsuit brought upon by city of Los Angeles, a consent order was passed against Wells Fargo in lieu of number of deposit account,...