Homework Help is Here – Start Your Trial Now!
Business
Management
d) Describe Purell Magazine and Publishing House fraud prevention programme and identify any improvements that might be necessary to prevent this type of fraud or at least discover it sooner.

d) Describe Purell Magazine and Publishing House fraud prevention programme and identify any improvements that might be necessary to prevent this type of fraud or at least discover it sooner.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
See similar textbooks
icon
Related questions
Question

d) Describe Purell Magazine and Publishing House fraud prevention programme and identify
any improvements that might be necessary to prevent this type of fraud or at least discover
it sooner.

As the two of you walked around the grounds, you asked the vice president if he could explain the accounting codes to you: "He stared at the [top] invoice for approximately 30 seconds and said: 'That is not my signature on the invoice!' As he looked through the stack, he found what appeared to be about three or four other forgeries. He was completely baffled." The initial investigation revealed that all the forgeries were in the painting division, budgeted at approximately $800,000 a year. In addition, the company employed only one person to oversee the painting operations in its facilities department: James Small. Small, a 35-year-old from New Fairfield, Ontario, earned about $30,000 a year.
Transcribed Image Text:As the two of you walked around the grounds, you asked the vice president if he could explain the accounting codes to you: "He stared at the [top] invoice for approximately 30 seconds and said: 'That is not my signature on the invoice!' As he looked through the stack, he found what appeared to be about three or four other forgeries. He was completely baffled." The initial investigation revealed that all the forgeries were in the painting division, budgeted at approximately $800,000 a year. In addition, the company employed only one person to oversee the painting operations in its facilities department: James Small. Small, a 35-year-old from New Fairfield, Ontario, earned about $30,000 a year.
Purell Magazine Construction Fraud You are a newly hired fraud examiner. You have been asked to write a preliminary report on the scenario below, using the information presented in Units 1 to 4 and findings from your additional research. Purell magazine and publishing house decided to outsource much of its direct-mail operations to specialized mail vendors. As a result, the company began converting its plant in Oakville, Ontario, from a direct-mail-order factory to an office complex. Part of the office complex construction involved building an auditorium identical to another auditorium in its European offices. As a recently hired Auditor and fraud examiner, this is your third day on the job. In an effort to get to know your new company, you had scheduled a series of interviews with all the vice presidents. The first interview was with the vice president of administrative services, Richard Green, who oversaw many construction projects and maintenance services. Because of the massive renovation project, it was not unusual for hundreds of invoices to be forwarded to Green. Coincidence one: You stopped by the accounts payable department and retrieved a series of recently submitted invoices for various trade expenses related to the auditorium construction project. “One of the things you wanted to accomplish was to understand how the accounting codes worked-what was capitalized; what was expensed; how it was recorded, etc." So, you grabbed a stack of processed invoices with accounting codes and went up to the construction site to meet with the vice president for an hour-long interview.
Transcribed Image Text:Purell Magazine Construction Fraud You are a newly hired fraud examiner. You have been asked to write a preliminary report on the scenario below, using the information presented in Units 1 to 4 and findings from your additional research. Purell magazine and publishing house decided to outsource much of its direct-mail operations to specialized mail vendors. As a result, the company began converting its plant in Oakville, Ontario, from a direct-mail-order factory to an office complex. Part of the office complex construction involved building an auditorium identical to another auditorium in its European offices. As a recently hired Auditor and fraud examiner, this is your third day on the job. In an effort to get to know your new company, you had scheduled a series of interviews with all the vice presidents. The first interview was with the vice president of administrative services, Richard Green, who oversaw many construction projects and maintenance services. Because of the massive renovation project, it was not unusual for hundreds of invoices to be forwarded to Green. Coincidence one: You stopped by the accounts payable department and retrieved a series of recently submitted invoices for various trade expenses related to the auditorium construction project. “One of the things you wanted to accomplish was to understand how the accounting codes worked-what was capitalized; what was expensed; how it was recorded, etc." So, you grabbed a stack of processed invoices with accounting codes and went up to the construction site to meet with the vice president for an hour-long interview.
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON
SEE MORE TEXTBOOKS