COLLAPSE There a a couple of things that could have been done to prevent th

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COLLAPSE
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There a a couple of things that could have been done to prevent this crime from being committed. First, controls should have been stronger. For instance, Rita should not have been allowed to be the long signatory on the town of Dixon’s checks. This allowed her to personally fabricate invoices and write and sign off on checks for them to go into the fraudulent account that she had set up and opened under the name of Dixon. There wasn’t a system of controls that would prevent these events from happening. She had total and complete control of the town’s finances, which allowed for the ease of committing the fraud.
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The one thing that could have prevented Rita from embezzling $53 million from the town of Dixon would have been to change the form of government from a commission to one with a city manager. The commission wasn’t devoted full time to the affairs of Dixon and were not educated in the fields of accounting and auditing. This is a critical mistake because the members of the commission didn’t know what to look for and only met a few times to discuss Dixon’s affairs.
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A city manager however, would be dedicated full time to the affairs of Dixon. The city manager would also be educated in accounting and would have made it more difficult for Rita to commit the fraud. The city manger would have also had access to all of the city’s accounts and would work to verify the authenticity of the accounts and the invoices also. In a sense, stronger internal controls would be implemented through this form of government also.

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