\fAPPENDIX C Student Handout Net Sales by Employee Table 3 Net Sales by Employee Angela Susie Wands Becky Lisa Jan-2011 5,219.01 4.406.32 5,562.26 426.42 Feb-2011 5,312.25 4,335.45 5,400.19 412.20 Mar-2011 6,109.04 5,064.64 6.351.36 377.22 Apr-2011 5,841.83 4,856.70 5,863.04 519.65 May-2011 5,591.73 4.530.96 5,544.49 342.93 Jun-2011 5,733.93 4.936.56 6,025.02 400.51 Jul-2011 5.951.85 4,853.62 5,745.94 473.66 Aug-2011 5,841.16 4,928.47 6,024.87 398.64 Sep 2011 5,845.47 4,979.06 5,972 82 412.81 Oct-2011 5.499.54 4,473.73 5,589.84 550.75 Nov-2011 5,542 60 4,673 8B 5,538 43 433.19 Dec-2011 5,316.83 4,652.6 5.676.96 124.99 Total 2011 67,805.24 56,692.00 69.295.27 5,072.97 an-2012 5,575.72 1.667.55 5.650.89 396.15 Feb-2012 5,737 10 1,677.46 5,742.97 419 21 Mar-2012 5,284.56 5,116.32 6,021 92 170.49 Apr-2012 5,259 30 1,363 82 5.177 51 123 84 May-2012 6,063.18 1.970.49 6.344.71 107.99 Jun-2012 5.923 48 4.426 80 5.977 61 358 52 Jul-2012 5.309 19 3.817.72 5.302.03 321.81 Aug.2012 6.083 85 1,524 16 6 251 63 398 37 Sep-2012 5.654.69 3.972.43 5.466.11 183.66 Oct 2012 5.896 68 4.261 23 5.794.90 146 66 Nov-2012 5.405 67 4.070.80 5.025.90 125.05 3 826.60 5.181 71 D3.60 Total 2012 68, 488-77 52.698.38 58,840 92 5.255.35Possible Fraud Scheme Test Procedures or Analyses Findings ConclusionsInstructions: Read the case. Based on your understanding of the business, identify 3 specific fraud schemes that may be occurring. List the schemes in the framework below. . For each possible fraud scheme, identify at least 2 specific test procedures or analyses to perform to identify fraud red flags. List the specific test procedures in the framework below using bullet point format. Be specific (e.g., compare total sales by employee for outliers, etc.). TIP: Refer to the ACFE Fraud Schemes document for possible detection procedures and the evidence presented in the case. Using the evidence provided in the case (Table 1 and the Figures and Appendices), perform the procedures. Document your findings in the framework below. Be specific. Use bullet point format. Document your conclusions. Submit this document and the completed framework by the deadline.APPENDIX B Student Handout Cash Sales and Credit Card Sales Table 2 Cash Sales and Credit Card Sales Month Sales-Net Credit Card Sales Cash Sales Jan-2011 15,614.01 4,600.13 11,013.88 Feb-2011 15,460.09 4,638.85 10,821.24 Mar-2011 17.902.26 5,235.97 12,666.29 Apr-2011 17,081.22 5,122.59 11,958.63 May-2011 16,010.11 4,799.04 11,211.07 Jun-2011 17,096.02 5,205.18 11,890.84 Jul-2011 17,025.07 5,102.48 11,922.59 Aug-2011 17,193.14 5,097.12 12,096.02 Sep-2011 17,210.16 5,218.93 11,991.23 Oct-2011 16,113.86 ,803.69 11,310.17 Nov-2011 16,188.10 1,812.62 11,375.48 Dec-2011 15,971.39 1.745.14 11.226.25 Total 2011 198,865.43 $9,381.74 139,483.69 Jan-2012 16,290.31 1,928.93 11,361.38 Feb-2012 16,576.74 5,061.93 11,514.81 Mar-2012 17,893 29 5,366 35 12,526 94 Apr-2012 15,524 47 4,652 63 10,871.84 May-2012 17,786 37 5,352 97 12,133.40 Jun 2012 16,886 41 5,008 95 11,877.46 Jut 2012 14,750.75 ,543.60 10,207.15 Aug-2012 17,258.01 5,426.47 11.831.54 Sep-2012 15,576.89 1.748.15 10.828 74 Oct-2012 16.402.47 5.093.55 11.308.92 Nov-2012 15.527.42 4.746.33 10.781.09 Dec 2012 14 810 29 4.636.48 10.173.81 Total 2012 195.283.42 59,560.34 135,717.08\f25 20 Figure 5 "No Sale" Transactions by Employee -201 Ma Aor 2011 201 201 14 2011 Aug 20 4-2011 Nov Angeli May 1012 wanda Put 201 AUG 2012 OR FORTABLE 1 Monthly Income Statement Data Month Sales-Gross Refunds Discounts Sales-Net Cost of Sales Gross Profit Jan 2011 15,655.64 41.63 15,614.01 4,780.50 10,833.51 Feb 2011 15,550.61 90.52 15,460.09 4,642.44 10,817.65 Mar 2011 18,048.12 145.86 17,902.26 5,436.80 12,465.46 Apr 2011 17,163.03 81.81 17,081.22 5,159.22 11,922.00 May 2011 16,196.78 186.67 16,010.11 4,816.29 11,193.82 Jun 2011 17,173.27 77.25 17,096.02 5,213.40 11,882.62 Jul 2011 17,130.03 104.96 17,025.07 5,151.28 11,873.79 Aug 2011 17,342.65 149.51 17,193.14 5,168.69 12,024.45 Sep 2011 17,294.96 84.80 17,210.16 5,115.20 12,094.96 Oct 2011 16,206.33 92.47 16,113.86 4,886.35 11,227.51 Nov 2011 16,275.63 87.53 16,188.10 4,874.49 11,313.61 Dec 201 1 16,176.27 204.88 15,971.39 4,822.16 11.149.23 Total 201 1 200,213.32 1,347.89 198,865.43 60,066.82 138,798.61 Jan 2012 16,433.40 143.09 16,290.31 4,877.49 11,412.82 Feb 2012 16,712.39 135.65 16.576.74 5,015.28 11.561.46 Mar 2012 18,066.56 173.27 17.893.29 5.395.72 12.497.57 Apr 2012 15.661.91 137.44 5.524.47 4.690.77 10.833.70 May 2012 17.867.93 81.56 17.786.37 5.401.22 12,385.15 Jun 2012 17,737.33 139.19 711.73 16.886.41 5.370.09 11.516.32 Jul 2012 15.676.54 $5.94 869.85 14,750.75 4.762.23 9.988.52 Aug 2012 18.313.71 96.09 959.6 17.258.01 5.526.36 1.731.65 Sep 2012 16.585.78 28.07 980.82 15.576.89 4.989.24 0.587.65 Oct 2012 17.404.83 78.14 924.22 16.402.47 5.1 14.16 11.288.31 Nov 2012 16.526.38 61.03 937.93 15.527.42 4.867.49 10.659.93 Dec 2012 15.853.20 78.74 964.17 14.810.29 1.782.77 10.027-57 Total 2012 202.839.96 1.208.21 6.348-33 19528 60.792.82 134.490.60Figure 2 Refunds by Employee 1080 Table 5 Discounts by Employee Month Wands Becky un 2012 209.92 105.62 87 28 3.91 ul-2012 125.34 599 41 145.10 Aug 2012 12 42 183 58 Sep-2012 108.51 683 81 188 50 Oct-2012 47.66 652 37 124 19 Nov 2012 127.40 684 21 126 32 Dec-2012 147.98 673 54 42 65 Total 2012 979.23 4.362.57 997.62 8.91APPENDIX D Student Handout Refunds, Discounts, Volds, and "No Sale" Transactions by Employee Table 4 Refunds by Employee Mouth Angoda Susie Wood Becky Lisa Jan-2011 1241 1.18 28.04 Feb-2011 33.95 42.33 14.24 Mar-2011 22.33 77.51 46.02 Apr-2011 28.64 53.17 May-2011 41.45 76.20 69 02 Jun-2011 44.56 32.69 Jul-2011 0.71 55 65 35 42 13 18 Aug-201 1 51.70 65 88 31.93 Sep-2011 47.50 654 10 76 Oct-2011 25.90 13.06 53.51 Nov-2011 1451 10 98 11 45 30 59 Dec 2011 68 28 63.35 73.25 Total 2011 391.9. 165-17 (18.77 71.81 Jan-2012 19 10 56 41 57 18 Feb 2012 13.77 19 16 Mar-2012 $5 02 58 35 11 51 Ap -2012 13.83 May-2012 58 60 Jun 2012 31 00 Luz 2012 4.79 Sep-2012 Oct 2012 1 47 Total 2012 406 54 149.12 420.51 31.54business in the past seven months by increasing advertising and promotions (including a new coupon discount program, effective June 2012) and expanding product offerings, so this is a feasible explanation to her employees. You make the following observations: . Cindy has five employees-four clerks (Angela, Becky, Susie, Wanda), who assist customers and conduct sales transactions, and a store manager (Lisa), who oversees the clerks, handles minor customer issues, summarizes and records daily sales, and prepares bank deposits. Cindy monitors perpetual inventory records and orders inventory, pays bills, handles payroll, takes deposits to the bank, and reconciles bank statements. . The store is open Tuesday through Saturday. Lisa, Angela, Susie, and Wanda each work Tuesday through Saturday. Becky is a high school student who only works Saturday. . There are two electronic registers. Each employee must enter a unique code in order to access the registers. Clerks have full authority for entering all types of transactions in the registers. The registers read inventory barcodes, so transactions automatically update Cindy's perpetual inventory records. The registers issue two copies of receipts-one copy for customers and one copy for the store-in addition to recording all register actions on a register tape. Cindy accepts only cash or credit card payments from customers. There is one credit card machine that sits on a counter behind the two cash registers. . Cindy uses small business accounting software for all accounting purposes. Lisa has access to the system to record sales data and to prepare bank deposits. Cindy handles all other accounting functions in the system. Cindy and Lisa each have their own locked office in the back of the store. In addition, you obtain from Cindy select monthly income statement data for the past two years (see Table 1). Required Identify a list of fraud schemes that may be occurring at Cindy's store. Then consider what your next step would be to approach the investigation and why this is your next step. For example. what procedures or analyses would you perform next, and why? Come to class prepared to discuss your responses\f\fINTRODUCTION C indy Nyglens owns a small craft shop in downtown Sun Prairie. Last week, Cindy received an anonymous typed note in an unstamped envelope, left on her desk. The note read: cindy : One of your employees is stealing cash and robbing you blind. A concerned friend None of her employees knew where the envelope came from when she questioned them about its appearance. Cindy is obviously concerned, but unsure how to go about investigating the tip herself. She contacted you for assistance. You arrange to observe store operations, under the premise of providing feedback as a consultant for improving and streamlining business operations. Cindy has been trying to grow her Jodi L. Gissel is an Assistant Professor at Marquette University. I thank Don Giacomino for observing a case implementation and for providing comments on the initial version of the case. I thank the editors and three anonymous reviewers for their valuable suggestions to improve the case. I thank my students for their participation and feedback. Published Online: July 20131200 09 Void Andant Figure 4 Voids by Employee at 2011 May 201 Jun 2011 141 2011 Aug 2011 Sep- 2011 DR.2011 NOV 2011 Dec 201 1 AD: 2012 Wanda Becky