Considering the nature of the relationship between Robatelli’s Pizzeria home office and its franchise owners, the company may be quite vulnerable to theft or fraudulent financial reporting committed by these franchise owners.
In 700 to 1,050 words, discuss the following:
- Describe three components of the fraud triangle and how each would relate to a franchise owner’s likelihood to defraud Robatelli’s Pizzeria.
- Identify three types of fraud to which Robatelli’s Pizzeria may be susceptible.
- Indicate whether the fraud is classified as management fraud, employee fraud, vendor fraud, customer fraud, or computer fraud for each.
- Suggest an internal control that could be implemented to prevent or detect the potential fraud for each.
- Design a 5- to 6-bulleted item code of ethics for Robatelli’s Pizzeria. You may find guidance by searching the Internet for examples.