Bob was Sales VP for Lisa, Inc. a middle-market advertising firm that he joined 20 years...

 

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Bob was Sales VP for Lisa, Inc. a middle-market advertising firm that he joined 20 years ago. Due to his tenure, Bob had personal relationships with the Board of Directors and other C-Suite executives, and he used his positon to intimidate other employees especially when he felt challenged. As a result of Bob's frequent travel, he frequently submitted sizeable expense reports. He often submitted delinquent expense reports which made it difficult for the accounting department to match the business purpose of the expenses he submitted. When questioned about an expense report item, Bob became unpleasant which made people think twice before challenging Bob. Lisa, Inc. hired Linda, a new Fairleigh Dickinson University MBA graduate, as accounting manager. Rather than backing off after being unfairly ridiculed by Bob, Linda decided to perform a comprehensive audit of several years of Bob's expense reports and uncovered fictitious receipts, mileage for travel never taken, and numerous personal expenses. Upon being confronted, Bob claimed that these items were merely "perks" for his stellar performance and company longevity. a. Explain what may cause Bob to commit fraud. b. Explain what fraud controls Lisa, Inc. should implement Bob was Sales VP for Lisa, Inc. a middle-market advertising firm that he joined 20 years ago. Due to his tenure, Bob had personal relationships with the Board of Directors and other C-Suite executives, and he used his positon to intimidate other employees especially when he felt challenged. As a result of Bob's frequent travel, he frequently submitted sizeable expense reports. He often submitted delinquent expense reports which made it difficult for the accounting department to match the business purpose of the expenses he submitted. When questioned about an expense report item, Bob became unpleasant which made people think twice before challenging Bob. Lisa, Inc. hired Linda, a new Fairleigh Dickinson University MBA graduate, as accounting manager. Rather than backing off after being unfairly ridiculed by Bob, Linda decided to perform a comprehensive audit of several years of Bob's expense reports and uncovered fictitious receipts, mileage for travel never taken, and numerous personal expenses. Upon being confronted, Bob claimed that these items were merely "perks" for his stellar performance and company longevity. a. Explain what may cause Bob to commit fraud. b. Explain what fraud controls Lisa, Inc. should implement

Answer rating: 100% (QA)

Required Answers Ans a The fraud tringle can be used as a framework to explain the high fraud risk in this scenario and what may cause Bob to commit f... View the full answer