Darlyne Lopez was employed by Merrill Lynch and handled the cash the brokerage firm brought in. She was highly trusted, never took a vacation and never missed a day of work. When Lopez was in an auto accident it was revealed that she had been embezzling up to $600,000 of the companies deposits. Lopez did this for five years by using a well known deposit scheme. The fact is that Merrill Lynch could have avoided this if they would have safeguarded their assets. When safeguarding assets companies follow strict guidelines when handling assets for example they my switch out cashiers on a schedule or use strict supervision rules. Merrill Lynch could have avoided this mishap if they would have used some strict safeguarding rules. The Foreign Corrupt Practices Act orders all companies under SEC regulations to maintain internal controls, which is also regulated under the Sarbanes-Oxley Act of 2002.
Charles T. Horngren. Walter T. Harrison, Jr. Linda Smith Bamber. 2005. Accounting I&II. Pearson Custom Publishing. Chap. 8 Pg. 323-324
Currently rated 5.0 by 1 people
- Currently 5/5 Stars.
- 1
- 2
- 3
- 4
- 5
