Answer the following questions. Use complete sentences and correct grammar. Remember the “3 Cs” – Clear, concise, and complete.
Refer to the in-class video about payroll fraud at the Census Bureau:
Who is the victim in this fraud?
Describe the fraud in a few sentences?
After watching the steps that this employee took to report the fraud, what would you do next if you were the employee in this clip?
Describe two ways that this fraud could have been prevented?
Refer to the in-class video about tone at the top and the video about payroll fraud at the Census Bureau:
Refer to the lecture/book:
Matt Damon is a payroll manager for a mid-sized distributor in the northeast. Last year, his performance review was conducted late, so he received a retroactive pay increase. Because he was not authorized to access his own employee records, Damon stole another employee’s password and logged into the payroll system. He manipulated his records to keep the retroactive pay increase in effect in future periods, effectively doubling his intended pay raise. What type of fraud is this? a. Larceny of wages b. Falsified hours and salary scheme c. Commission scheme d. Ghost employee scheme
Jack Nicholson works for the Shinning Group as the customer service supervisor. When Russell Crowe was hired into Nicholson’s department, Nicholson listed his start date as one month before he actually began work. Accordingly, the payroll department generated an extra paycheck for Crowe, which Nicholson intercepted and cashed at a liquor store. What type of fraud is this? a. Forged endorsement scheme b. Ghost employee scheme c. Altered payee scheme d. Falsified wages scheme
Kathy Bates is an internal auditor for Hobble Industries. Recently she ran a program that identified customer accounts which had previously been dormant for six months or more but had sales in the last two months of the year. What type of fraud would this test most likely reveal? a. Shell company scheme b. Pay-and-return scheme c. Commission scheme d. Personal purchases scheme
During a review of Elmo Service’s payroll records, Whoppi Goldberg, an internal auditor, noticed that Sean Penn has no deductions taken from his paychecks for withholding taxes or insurance. She then searched for Penn in the personnel records, but could not locate him. Based on this information, what type of scheme did Goldberg most likely uncover? a. Ghost employee scheme b. Falsified salary scheme c. Fictitious vendor scheme d. None of the above
Dark Knight Industries hired Christian Bale, CFE, to investigate some large variances in the company’s labor costs. While looking through the payroll records for the shipping department, Bale noticed several employees who claimed extensive overtime during pay periods in which the company’s incoming and outgoing shipments were minimal. Bale pulled the timesheets for these pay periods and noticed that those belonging to the suspect employees had signatures that didn’t match the signatures on the other timesheets. What type of fraud might these findings indicate? a. Ghost employee scheme b. Commission scheme c. Falsified hours and salary scheme d. Overstated expenses scheme
Halle Berry, CFE, has been retained by Swordfish Mortgage Company to investigate some suspicious activity. As part of her examination, Berry compares the company’s payroll expenses to budgeted projections and to prior years’ totals. She also runs an exception report looking for any employees whose compensation has increased disproportionately over the prior year. She then compares the payroll files to the human resource files to test for differing salary rates. What type of scheme is Berry most likely looking for? a. Ghost employee scheme b. Payroll tampering scheme c. Commission scheme d. Falsified hours and salary scheme
In one of the case studies in the textbook, Jerry Harkanell worked as an administrative assistant. How was his scheme detected? a. An exception report showed that Harkanell had claimed overtime hours for a period when there was no need to work overtime. b. The payroll department sent the timesheets for one pay period back to the supervisor for review when a suspicious number of hours had been indicated. c. An overtime audit was conducted revealing that Harkanell had worked an unusual number of hours compared to others in the department. d. The internal auditors received an anonymous tip.
In the Harkanell case, What red flag was present that should have made someone suspicious? a. He used erasable ink to record the hours on the timesheets. b. He showed up for work on a day he had off so he could personally turn in the timesheets. c. No one else in the department had overtime hours but Harkanell. d. All of the above
How was the Harkanell case resolved? a. He confessed to falsifying the overtime and was terminated. b. A civil suit was filed to recover the loss. c. He was convicted and sentenced to prison. d. None of the above
In one of the case studies in the textbook, Katie Jordon was the “All-American Girl Next Door”. What was her motivation for stealing? a. Her boyfriend, a professional motocross racer, was injured in a race. b. She was getting married and needed money for the wedding. c. She blew the engine in her car and didn’t have the money to replace it. d. She wanted to pay off her college loan early so she could save for a house.
How was Jordon’s scheme discovered? a. An employee tipped off the main office when she saw the timesheets listing an employee that she had never heard of. b. When Jordon’s boss made a routine visit to the office, he noticed that there was no sign of an assistant in the office. c. She was splitting the proceeds with her boyfriend, and he contacted the home office when she broke up with him. d. The auditors found it when they conducted a routine audit of all new acquisitions after being in business for one year.
What happened to Jordon? a. The company terminated her employment but failed to press charges against her in order to keep things quiet. b. She was convicted but served no jail time. c. She skipped town and a warrant was issued for her arrest. d. She took out a loan for the amount stolen and paid the company back in lieu of the company pressing charges against her.
Excerpt from file: 1.Whoisthevictiminthisfraud? ThepartywhosuffersthisswindleisCensusBureau.CensusBureauincurredlossesas theemployeestamperedwiththecompanysrecordsafterholdingmeetswiththeirsuperiors. Duringthemeetings,theywouldlearnedaboutthecompanysrecordsandthishelpedthem
Filesize: < 2 MB
Print Length: 3 Pages/Slides
Surround your text in
**bold**, to write a math equation use, for example,