Myra Manning, CFE, was hired to investigate some suspicious activity at Dupree Supply, the largest regional supplier of coffee, soda, snacks, and tobacco to convenience stores. Dupree Supply had received numerous complaints from customers that they had not received credit for cigarettes purchased from Rodney Paris, their route salesman. Myra examined Rodney Paris' tobacco warehouse withdrawals, vendor cancelled checks (that evidenced that the checks had been deposited into Dupree Supply XL), and handwritten receipts showing that customers had made cash payments for the tobacco purchases. In total, she noted that over $48,000 was neither credited to customer accounts nor deposited by Rodney Paris for the tobacco sales. What type of scheme might she have uncovered and why?

Answer rating: 100% (QA)

Myra has uncovered the scheme that the vendors payments and sales receipts from customer in cash ha... View the full answer