Able, a bookkeeper for a small company, typed out checks to a local vendor and her boss signed them. She then used the erase function on her typewriter to delete the vendor's name and insert her own. She also changed the amounts of the checks in the same manner. Then she cashed the checks. What kind of scheme did Able commit?
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- Allison Everhart, an employee in accounts payable, believes she can run a fictitious invoice through the accounts payable system and collect the money. She knows payments are subject to an audit. Which account would be the best place to hide the fraud?a. Inventory.b. Wage expense.c. Consulting service expense.d. Property tax expense.Which of the following is true in the case of forgery? Forgery does not include anything done by typing or word-processing. If a person signs his own check for $100 cash, knowing that there is only $50 in the account, and manages to cash it, the check is a forgery. The "forged instrument" must in some way be false, as in a false signature, a backdating of an existing instrument, or falsely modifying a corporate name. Forgery can be committed only by forging signatures. Alteration of an already existing document does not constitute forgery.Assume that brooke miles accounts payable clerk for west coast design inc.stole $48,350 by paying fictitious companies and cashed the checks at a local banks. Describe a control procedure that would have prevented or detected the fraud?
- The sales of $2,000 made to Shanaya has been posted to the Sara’s account by mistake. It happened because a customer account number was incorrectly entered into the system. Explain what internal control procedure(s) would provide protection against this threat in future?A multimediacourse graduate used design software to create paychecks that lookedidentical to those of a company in his town.The paychecks were deposited electronically into ofhis friends’ accounts. What type of fraud did hecommit? Select one: a. output fraud. b. input fraud. c. computer instruction fraud. d. processor fraud.Select the correct answer(s) for the following multiple-choice questions. Note that there may be more than one correct answer. A group of immigrants moved from town to town in the Pacific Northwest perpetrating the same fraud. An advanced member of the group obtained a paycheck from the largest employer in the town by paying a premium to the check’s value. He then scanned the check and used a variety of software packages to prepare fictitious paychecks from the employer. The group arrived on the next payday, cashed the checks at the local establishment, and moved to another town before the check was presented for payment at the local bank. This is an example of what type of fraud? a. Input fraud b. Processor fraud c. Computer instruction Fraud d. Data fraud e. Output fraud
- Aclient heard through its hotline that John, the purchases journal clerk, periodically en- ters fictitious acquisitions. After John creates a fictitious purchase, he notifies Alice, the accounts payable ledger clerk, so she can enter them in her ledger. When the payables are processed, the payment is mailed to the nonexistent supplier's address, a post office box rented by John. John deposits the check in an account he opened in the nonexistent supplier's name. 5.2Types of Cyber Crimes. The following situations are similar, but each represents a variation of a particular crime. Identify the crime and point out the differences in the variations. (a) Chen, posing fraudulently as Diamond Credit Card Co., sends an e-mail to Emily, stating that the company has observed suspicious activity in her account and has frozen the account. The e-mail asks her to reregister her credit-card number and password to reopen the account. Chen's action is cyber theft. In this situation, it would be phishing, which is a district form of identity theft. Chen is the perpetrator to find out about Emily’s financial data and passwords by posing as Diamond Credit Card Co. The suspicious activity in her account and the frozen of her account are part of the schemes for the perpetrator to seek information from Emily. He included this information to frighten Emily, so she will immediately respond with information and her account wouldn’t be frozen. When Chen has her…“Organizations are encouraged to take every precaution possible to protect their information systems so that potential for fraud and any resulting losses can be significantly minimized.” Required: Critically explain any three motives behind the cheque fraud scheme. What to do if someone has deposited a fake cheque into your bank account?
- Consider each of the following situations. Is there a potential problem? Which part of the fraud triangle is involved, if any? A. Susan is an accounts payable clerk. She sets up creditors in a financial database and pays invoices as they come in. Last year, she won employee of the year and is a valued employee. Through the grapevine, Susan's boss just learned that Susan's brother has a gambling problem. B. Now suppose that Susan from situation A is now secretary for the head of the marketing department. She keeps track of the vice president of marketing's schedule and handles the correspondence. C. Keith has been employed for 6 months as a teller at a community bank. All is going well, and his cash drawer has had shortages only twice (of less than P500). The shortages were traced and the problems corrected. D. At the company Memorial Day picnic and golf outing last week, Nancy noticed that June moved her ball to a better lie when she thought no one was looking. There…Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole $48,350 by paying fictitious invoices for goods that were neverreceived. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure thatwould have prevented or detected the fraud.Janice Dodds opens the mail for the Ajax Plumbing Company. She lists all customer checks on a spreadsheetthat includes the name of the customer and the check amount. The checks, along with the spreadsheet, are thensent to Jim Seymour in the accounting department who records the checks and deposits them daily in the company’s checking account. How could the company improve its internal control procedure for the handling of itscash receipts?