Final Paper Essay

maneuver plenty is one of the biggest retailers there is out there, transport in an estimate of $74 one thousand zillion dollars a year in revenue. mass of commit revenue is earned during the busiest duration of the year, which are Black Friday and holi days. sign has had a huge positive reputation because of the bide more(prenominal) Pay Less yell and giving 5% back to the community. How ever so, intent has been leaving through or so heavy times because of the Tar initiate desecrate that occurred during the holidays of 2013.This investigate paper will commission low on introducing the maneuver come a dismantle and how it has moved(p) the c everyer-up and what the troupe has done to build the task. Moving forward, I will focus on in pass watered regards that calculate could nominate utilise and summarizing everything towards the end. stain Breach & inside Controls mug Corporation is a comfortably kn cause and respected retail inventory out there . pit is a jackpot that buys goods from manuf exploitures at a purchase force out price and reselling it to consumers in a high price to make a profit. Target has brought in revenue of $74 million dollars a year and continues to grow every year.However, Target has gone through some voiceless times with the Target breakage that comely occurred during the holidays of 2013. Consumers deplete had a hard time trusting their phone bill of fare readers and committal and gross gross sales make believe been dropping ever since. The question that is now in the give vent is what internal curbs that comp any had during this faulting and what could they have done to vacate this breach that just occurred. To begin with, the high society was running absolutely and driving outstanding sales until the telephoner and guest found out that they had a breach, withal known to the community as the Target Breach.Target corporation sustain that a major entropy breach occurred between Black Friday and December 15, 2013, which includes some(prenominal) of the most important obtain days of the year (Edelson, 2013). Ever since the Target breach, the confederacys reputation was hurt, consumers were not convinced(p) about shopping, and are afraid of victimisation the card readers at the stores. Later in time, after the breach was proclaimed, the company had granted further breeding on how the breach affected the people.It is believed that the breach affected slightly 40,000 card devices at store registers, which could inculpate that millions of cardholders could be vulnerable, according to the people known with the incident (Sidel, 2013). On top of the 40,000 card devices being affected, 40 million peoples credit card and debit entry card information was stolen. The CEO of Target Corporation later released to the press and announced that psycheal information such as address, names, phone numbers, and e-mail address were also taken from the Target establ ishment.After indicant about the Target breach, being an garter manager for Target, and hearing about the tragical that has been caused, I remember feeling turnover because of the way the company was going to be affected. However, it also reminded of the internal control impression that was thought in class. There was a lot of fraud winding with the Target breach, which is something that occurs when it comes to intern control. craft refers to any act by the wariness or employees of personal line of credit involving an internal deception for personal gain.Fraud may include, among other acts, embezzlement of short letter cash, theft of assets, filing false damages claims, filing false health claims, and monetary statement fraud (Ferris, Wallace, Christensen, 2014, pg. 314). With the Target breach, you are able to attend to the fraud triangle concepts, which consist of pres undisputable, opportunity, and rationalization. organism employed by Target, that concept came into mine when reading the article because there was an e-mail sent to management about believing that an employee that worked with the POS (point on sale) system had a lot of inside information within the system.The pressure was there to get information from the POS system and rationalization was involved when they knew that they can get credit card information. The opportunity occurred when they knew the busiest time of the year was going to be Black Friday and majority of the sales are driven in that day. From all that has occurred it is not neat what internal controls Target had in enjoin to overturn this situation. privileged controls are important when it comes to businesses in send to avoid situation like the Target breach.There are two split that I believe that important when it comes to internal controls, which are embarrassion control and sensing control. A prevention control is think to deter a problem or fraud before it can climb (Ferris, Wallace, Christensen, 201 4, pg. 316). Target should have get marrieded the prevention control with the POS system in revisal to avoid the Target breach. A detection control, on the other hand, is designed to discover any problems or fraud shortly it arises (Ferris, Wallace, Christensen, 2014, pg. 316).Target followed the detection control after the problem of the breach was brought and took justice in their own hands in methodicalness to amaze the problem. The first thing Target did was localize a prominent message on its Web site, Important notice unaccredited access to payment card data in the U. S. stores. The message linked to a letter alerting customers that a breach occurred and outlining steps Target is taking to a voice a recurrence (Edelson, 2013). some other step that Target has taken is speech justice for the information was that was stolen out of their systems.Target had invested $5 million dollars into a multi-year iron in order to stop phishing scams (Target, 2013). Target has massi vestanding history of commitment to our communities, and cyber gage is one of the most pressing issues face up consumers today, said Steinhafel. We are proud to be working with three trusted organizations-the content Cyber-Forensics and Training Alliance (NCFTA), National Cyber surety Alliance (NCSA) and Better Business berth (BBB)- to advance public education most cyber security (Target, 2013).Target has gone to long measures to protect the information of the guest and insure loyalty by offering ProtectMyID, which keeps drop behind of credit reports, monitoring, and identity theft (Target, 2013). As an apology to the guest, Target offered a 10% off discount to all guests which were a huge success for the company hardly numbers of transactions was cash paid. Being an employee for Target, we are still determine to follow our core roles, continue delivering the Expect More Pay Less promise, and delivering an excellent shopping experience for our guest in order to continue dri ving profitable sales and guest loyalty.In order to avoid this situation and detect the problem frontward of time, Target should have incorporated the pastime elements that are designed for prevention and detection controls. The first element is establish clear lines of authority and responsibility, which is giving authority to a supervisor or manager save also evaluation their consequently to companies policies and rules. put through segregation of duties, requires that when allocating various duties within the explanation system, management should make sure that no employee is assigned too many antithetic responsibilities (Ferris, Wallace, Christensen, 2014, pg.317). Hire competent personnel, which the company guarantees if that person has the education and qualified skills to perform that job. affair control number on all business documents, which is having all important documents with control numbers. Develop plans and figures, which is having a plan and budget in order to bring the company forward. For example, the $5 million dollars that were invested in the anti fraud software in order to bring guest loyalty back. keep back adequate account records, which is making sure that the company has the most recent accounting records.For example, the number of fraud claims that were reported down the stairs guest bank statements in order to reinvers their money back. Provide physical and electronic controls, is locking their doors or important files to prevent theft, which should have happened with the POS system. Conduct internal audit, is a company function that provided independent appraisals of the companys financial statement, its internal control, and its trading operations (Ferris, Wallace, Christensen, 2014, pg. 319).In conclusion, we are able to see how the company was impacted from the breach that had occurred and the actions that the company has taken in order to fix the problem. People information had been stolen and finances have been ta mpered through it. We are able to see how internal controls play an important part when it comes to finances, accounting, and to businesses such as Target. If the proper elements and procedures had been applied with internal control I am sure that all of this could have been avoided or reduced.