Detecting Red Flags is important as the internal controlsmechanism should define a specific approach for monitoringfinancial statements (and the base transactions below theconsolidated statements) on an ongoing basis. In this discussionforum, please address the following situation: You are thecontroller of a global business unit of a major corporation. Thisbusiness unit is comprised of 15 manufacturing plants globally,which roll up into consolidated business unit financials of whichyou are responsible. As a result, you are tasked with monitoringthe financial results of the entire business unit, which entailsensuring that there are no fraudulent activities rolling up throughyour financial statements. How would you design your monitoringsystem to handle this responsibility? What specific steps would youput in place to manage the global financial statements? If you didnotice potentially questionable activity in one of your plants, howwould you react? What would you do to investigate and address theissue?
