6-2 - Patrick Morton AIS 6-2 1) Greater Providence Deposit...

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Patrick Morton AIS 6-2 1) Greater Providence Deposit & Trust could improve their controls through a variety of methods and procedures. To begin, in order to add validity to the loans issued, a check should be made to make sure names, social security numbers, addresses and phone numbers match up. Additionally, there should have been measures, such as a segregation of duties, in place to prevent Guisi from taking out loans in excess of what he is permitted. He was only allowed to lend up to $25,000 without committee approvals, yet he was able to take out a loan worth $63,500. The internal auditors could possibly be forced to examine smaller loans as well as the larger ones that they were required to check. This represents a lack of proper segregation of duties in that far too much power was given to Guisi as a manager. He should not be able to write loans entirely by himself, but rather there should be a process requiring approval and checks by various people and departments. Without these checks, Guisi was able to abuse his power as a manager and
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6-2 - Patrick Morton AIS 6-2 1) Greater Providence Deposit...

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