Question: ABC Company has three in house salespeople Red White and Blue
ABC Company has three in-house salespeople (Red, White, and Blue) who all make frequent trips to Santa Fe, New Mexico, where one of the company’s largest customers is based. A manager at ABC has noticed that the average airfare expense claimed by Red for these trips is $755 round trip. The average airfare expense claimed by White is $778. The average airfare expense claimed by Blue is $1,159. What type of expense reimbursement fraud might this indicate, and what controls would you recommend to the company to prevent this kind of scheme?
Answer to relevant QuestionsBaker is an auditor for ABC Company. He is reviewing the expense reports that Green, a salesperson, has submitted over the last 12 months. Baker notices that Green’s expenses for “customer development dinners” ...How do register disbursement schemes cause shrinkage? Explain how each of the following three conditions could be a red flag for a register disbursement scheme. 1. Able, a cash register teller, is authorized to approve sales refunds and she is also authorized to make inventory ...Provide an example of a misappropriation of intangibles scheme. What is meant by the term “turnaround sale”?
Post your question