chapt 5b Flashcards
payroll schemes
employee manipulates org into issuing payment by making a false claim
Types of Payroll Fraud
ghost employee
falsified hours and salary schemes
comission schemes
ghost employees =
fake employees
Preventing and detecting Ghost employee schemes
payroll seperate from HR
verify changes to payroll
background and ref checks
falsified hours and salary
overstate the hours they worked or increase their salary to steal extra money.
most common form of misappropriating payroll funds
overpayment of wahes
Preventing and Detecting Falsified Hours and Salary Schemes
No overtime should be paid unless authorized in advance
Timecards should be taken directly to the payroll department after approval
time cards secured and monitored
commission schemes
manipulate sales records to increase their commission-based earnings
commission schmes = fucking with
sales records
Expense reimbursement schemes
Employees commit expense fraud by seeking reimbursement for false or inflated expenses.
4 Types of Expense Reimbursement Fraud
mischaracterized expense
overstated
fiiticious
multiple reimbursements
Mischaracterized Expense Schemes
personal expense as busienss expense
detect mischaracterized exp by comparing
work schedules with claimed expenses
overstated expense reimbursement
overstate expenses to get more in return
prevent overstating exp by
asking for photo of orginal recipet
get company to book travel not employee
fiticious exp
fake expenses
multiple reimbursement schemes
submit the same expense more than once.
Types of Register Disbursement Fraud:
false refunds
false voids
false refunds
employee processes fake refunds and pockets the money
3 types of false refund schemes
Fictitious refunds
Overstated refunds
Credit card refunds
false viods
void legitimate sales and take the cash.
