Question: Karen Martinis was responsible for opening mail processing vendor claims
Karen Martinis was responsible for opening mail, processing vendor claims, and authorizing payments. She was involved in a scheme in which she either double-paid vendor invoices, paid the wrong vendors, or overpaid the right vendors. What type of billing scheme is being described in this case?
Answer to relevant QuestionsWhat type of internal controls can be used to help prevent pay-and-return billing schemes? Perpetrators of check tampering schemes must obtain a signature on the check. What are methods used to affix a signature to the check? What measures can companies can take to prevent and detect fraudulent electronic payments? In the Ernie Philips case, $109,000 was stolen through check tampering. How was this scheme accomplished and what could management have done differently to prevent the scheme from occurring? There are two ways that an employee working on commission can fraudulently increase his pay. What are they?
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