TrustWorthy Part I: Internal Controls
NOTE: The views and opinions expressed by the interviewees in this video are their own and do not necessarily represent the views of Northern Trust.
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Summary
Internal control policies play an important role in fraud detection and prevention. In this Trustworthy segment, we learn how a bank became linked to the largest municipal embezzlement case in history in which an employee of the City of Dixon, Illinois (Rita Crundwell) was able to steal $53.7 million over 22 years. Bank employees not following established policies and procedures resulted in the employee being able to create a secret bank account in the city's name to which only she had access. Through this account, she was able to move large sums of money in and out of other city accounts without detection.
The bank paid $3.85 million as part of a larger settlement that Dixon's accountants, auditors and bank entered into with the city to settle charges of negligence. Bank employees let their trust of Crundwell lead them to override the bank’s internal control policies.
**CONTEST NOTE**
Please note that the TrustWorthy Contest will begin with the very next TrustWorthy episode which is scheduled to be released on May 26th. So please enjoy this episode and watch your emails for the official contest launch in two weeks.
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Summary
Internal control policies play an important role in fraud detection and prevention. In this Trustworthy segment, we learn how a bank became linked to the largest municipal embezzlement case in history in which an employee of the City of Dixon, Illinois (Rita Crundwell) was able to steal $53.7 million over 22 years. Bank employees not following established policies and procedures resulted in the employee being able to create a secret bank account in the city's name to which only she had access. Through this account, she was able to move large sums of money in and out of other city accounts without detection.
The bank paid $3.85 million as part of a larger settlement that Dixon's accountants, auditors and bank entered into with the city to settle charges of negligence. Bank employees let their trust of Crundwell lead them to override the bank’s internal control policies.
**CONTEST NOTE**
Please note that the TrustWorthy Contest will begin with the very next TrustWorthy episode which is scheduled to be released on May 26th. So please enjoy this episode and watch your emails for the official contest launch in two weeks.