Case Study 3

MCC
 Meet the Group

NIVEHTHA ELANGKOVAN ASHWIENI JAGATHEESAN TANGESWARY BALACHANDRAN NANTHINI GUNASAGARAN

EX03671 EX03654 EX03651 EX03648
 QUESTION 1
What are the critical issues in this case?

Missing Money Communication

The main issue is the unexplained There appears to be a lack of clear

disappearance of money from communication and accountability
customers' accounts. among staff members.
 Accountability Lack of Internal Control
Oversight System

The effectiveness of the

Mr. Hassan is The bank's branch
bank's internal control
concerned about the has not received
system is in question.
accountability and regular visits from
Despite Ms. Anna and
honesty of his staff. headquarter
Ms. Rose's claims that
the accounts were
reconciled and balanced
correctly
Q2 What are the weaknesses with the current bank’s
internal control?

Inadequate Monitoring Inadequate documentation

- There seems to be a lack of regular
monitoring and compliance with policies
and procedures.
- The fact that Mr. Hassan requested Ms.
Anna to prepare the "bogus" cheque report
for the board meeting next week suggests
that there is a lack of accurate and timely
documentation.

Lack of communication and Lack of accountability

coordination
- It is mentioned that all staff denied - There is no clear accountability for the
knowledge of the "bogus" cheque, despite missing money in the customer's account.
Ms. Rose confirming the transaction
related to it.
 Q3

Explain the possible ways for preparing the report

on improvement and
recommendation to improve the bank’s current
issues.
 Collaboration and
Communication

Employee Training Strengthen

Internal Controls

Identify Control Conduct a Thorough

Gaps Investigation

Enhance Training
Provide regular and
comprehensive training sessions
on ethical behavior, internal
controls, and the importance of
maintaining integrity.
Internal Audits
Conduct regular internal audits to
identify weaknesses in the internal
control system. This will help in
uncovering potential loopholes
that might be exploited for
unethical activities.
Q4
Code of Ethics
Reiterate and emphasize the
bank's code of ethics in all
interactions. Make sure all
employees are aware of the code
and its importance in guiding their
behavior.
Ethics Committee
Set up an ethics committee to
oversee ethical practices,
investigate reported incidents, and
recommend corrective actions.
Leadership Role
Modeling
Leadership should set an example
by demonstrating ethical behavior
and integrity in their own actions.
Performance
Evaluation
Include adherence to ethical
practices as part of employee
performance evaluations and
reward employees who
consistently demonstrate integrity.
Thank You