ACC 562 Week 3 Assignment

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Kristen Howton ACCT 562 Week 3 Assignment Professor Prevratil Case Study The case study describes a billing scheme. A billing scheme is one where false invoices are produced and processed where the checks are then turned around and cashed in by the perpetrator. A perpetrator is described as one who has committed an immoral act of wrongdoing (The DIctionary, n.d.). In the case study, the situation has arisen when a new auditor has come in and has taken a proactive approach in wanting to understand the company and how their accounts work. The auditor was originally reviewing recently submitted invoices in attempts to gain a further insight on the way the company coded, capitalized, expensed, recorded, etc, their transactions. He went out of his way to schedule interviews with the upper level management to become acquainted and ended up uncovering much more than standard procedures. In coincidence one, he enabled himself to request checks for false invoices, then taking it up a notch by recreating false invoices and submitting them to the accounts…show more content…
Due to the company’s weak controls, the accountants did not take the time to review each invoice or study the signatures that were most definitely forged in an unmistakable font immediately recognizable to the person who had been forged. According to the 2010 Global Survey, 42.1 percent of perpetrators were employees, accounting for most of the perpetrators of that year. It was a close first to the upper management who held second at 41 percent. They state that more than 80 percent of frauds are committed by individuals in six departments including accounting, operations, sales, upper management, customer service and purchasing. Miano was involved with the operation of the project therefore enabling him to the opportunity of such easy access to committing the actual crime (ACFE,

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