A company is investigating possible employee fraud in its accounts payable department. The company has identified a
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Question:
A company is investigating possible employee fraud in its accounts payable department. The company has identified a vendor that has been paid multiple times for the same invoice. The following data is available for the vendor in question:
- Total number of payments to the vendor: 10
- Total amount paid to the vendor: $100,000
- Original amount of the invoice: $8,000
Assuming that the company only authorized and intended to pay for the original invoice, calculate the amount of overpayment made to the vendor. Also, calculate the percentage of the total amount paid that was overpaid to the vendor. Based on your calculations, do you think there is evidence of fraud? Why or why not?
(Show all calculations and round to the nearest cent.)
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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