A company has discovered that a group of employees have been engaged in fraudulent activities, which resulted
Question:
A company has discovered that a group of employees have been engaged in fraudulent activities, which resulted in a total loss of $250,000 to the company. During the investigation, it was found that the fraud had been carried out by six employees, who colluded to manipulate the accounts by creating fake invoices and recording false expenses. The company wants to calculate the exact amount that each employee had contributed to the fraud.
The investigation revealed that the total amount of fake invoices and false expenses recorded by the six employees were as follows:
- Employee A: $70,000
- Employee B: $35,000
- Employee C: $50,000
- Employee D: $45,000
- Employee E: $30,000
- Employee F: $20,000
Assuming that each employee's contribution to the fraud was proportional to the amount of fake invoices and false expenses they recorded, determine how much each employee should be held responsible for.
(Show all calculations and round to the nearest cent.)
Forensic Accounting and Fraud Examination
ISBN: 978-0078136665
2nd edition
Authors: William Hopwood, george young, Jay Leiner