1. Let’s put expense reporting fraud in perspective with the Fraud Scale and the Fraud Triangle. What factors from an opportunity standpoint have to be in place?
2.Beta is an auditor for ABC Company. He runs a report that extracts payments to employees for business expenses incurred on dates that do not coincide with scheduled business trips or that were incurred while the employee was on leave time. What category or categories of expense reimbursement scheme would this report most likely identify?
3.Tuesday – Overstated Expense Reimbursements
Class….. Great topic this week to get us started.
- Overstated expense reimbursements
- Altered receipt – occurs when an employee doctors a receipt or other supporting documentation to reflect a higher cost than what he actually paid
- Overpurchasing
- Overstating another employee’s expenses – likely to occur in a system in which expenses are reimbursed in currency rather than by a check
- Orders to overstate expenses – employees falsify their own reports at the direction of their supervisors
- Preventing and detecting overstated expense reimbursement schemes
- Require original receipts for all expense reimbursements
- Generate comparison reports that show reimbursed expenses per employee
- Spot check expense reports with customers, confirming business dinners, meetings, etc.
QUESTION 1: In the case study “Frequent Flier’s Fraud Crashes,” what internal controls could have detected the fraud earlier?
0 comments