ACC 556 WEEK 4 Crooked, Scenario 4
ACC
556 WEEK 4 Crooked, Scenario 4
ACC
556 WEEK 4 Crooked, Scenario 4
Crooked, Scenario 4
LEARNING TEAM ASSIGNMENT
After the second day of intense training
with Joseph, Sterling and Glenda Berkeley, you were sitting in your office
preparing the final exam for this fine group, which would be administered the
next day. The finishing touches of the final were just being completed
when you noticed a suspicious package outside your door. Thinking it
might contain a CrookEd bomb, you called security, who easily assessed there
was no bomb. Relieved, you opened the package.
In the package you found a
lengthy letter, perhaps a confession, from a current CrookEd employee who
wanted to remain anonymous. The letter contained all kinds of
allegations. As you read through the letter, you had an idea. You
decided to take a number of the allegations and put them in a table for the
final exam you would be administering the next day. These kinds of frauds
could be found in the text for the class you were teaching: Fraud Examination, 5th Edition Chapters 14 and
15and from Executive Roadmap to Fraud Prevention and Internal Control:
Creating a Culture of Compliance, 2nd Edition, Chapter 7 and 9.
You decided on a match the fraud
scenario with the fraud category approach. The table you created is
provided below, and interestingly corresponds to this week’s assignment.
Match the
fraud scenarios provided in the table below with the fraud type(s) listed with
the table. Do this as a team.
Submit the
below table within a Word document. Grading: 5 pts.
Fraud
Types
- Bribery—undisclosed payment before or to influence the act
(kickbacks, under-the-table payments).
- Illegal
gratuities—unlisclosed payment after to
reward an act (trips, gifts, perks).
- Larceny—stealing after the money is recorded; on the books.
- Skimming—stealing before the money is recorded; off the books
(taking cash off the top, unrecorded sales)
- Fraudulent
Disbursement—unauthorized payment, on the books (paying for
personal items).
- Check tampering—altering a checks, forgery, false endorsement
- Foreign Corrupt
Practices Act (FCPA)—bribery of a foreign official
- Conflict of
interest—undisclosed personal economic interest.
- Economic
Extortion—demand for money; taking thru coercion/fear
(shake-down, freeze-out)
- Shell company—company exists only on paper.
|
|
Fraud Scenario
|
Fraud Type(only one per scenario)
|
|
1.
|
A VP of Construction at CrookEd created six bogus
construction companies and submitted bids through them for the pipeline, all
significantly higher than CrookEd’s bid
|
|
|
2.
|
An intern with CrookEd was sent to an office supply
store to pick up some binders. He phoned his wife on the way and asked
her if she needed anything. She said binders. So, the intern got
10 instead of five binders and took five home. He submitted his receipt
for the 10 binders. No one bothered to check how many binders were
placed in the supply room
|
|
|
3.
|
A CrookEd Office Manager paid the phone bill for all
employee mobile phones and figured out one day that she could add her
boyfriend to the plan without anyone noticing. The boyfriend did not
work for CrookEd.
|
|
|
4.
|
Mack offered a state official an all-expense paid
moose hunting trip to Saskatchewan simply because Mack’s and the official’s
sons played on the same junior hockey team. Mack used company funds for
this figuring the official may be able to help CrookEd in the future
|
|
|
5.
|
When Mack went on the moose hunting trip with the
North Dakota official, he met a Royal Canadian Mounted Police (RCMP) during
the hunt. The RCMP was in charge of finding a company to build a new
ranger station. Mack paid the RCMP $25,000 Canadian dollars from
CrookEd funds to let CrookEd build the ranger station
|
|
|
6.
|
Stagger Lee had a college friend, Turk Woodhead, who
owned a lumber company who was the sole supplier of lumber to all of
CrookEd’s jobs. Stagger had a 30% interest in Turk’s company. He
never told anyone at CrookEd about his investment in the other company
|
|
|
7.
|
CrookEd had a small lumber yard and hardware store
that sold lumber and other construction supplies to local, but usually
connected, construction companies. CrookEd charged exorbitant fees for
its products to these companies. The other companies did not complain
too much because they knew if they did not buy their material from CrookEd
they would be “locked out” of being sub-contractors with CrookEd on any job
|
|
|
8.
|
The Office Manager collected
all the sales from the lumber yard/hardware store and insisted on “cash
only.” Periodically, she would keep a few hundred dollars
of these sales and throw office parties with these proceeds. She made
the cash deposits and reconciled the bank statements and was thus able to
keep these parties “off the books” or could “fudge” the amount to make
everything balance
|
ACC
556 WEEK 4 Crooked, Scenario 4
ACC 556
WEEK 4 Crooked, Scenario 4
Комментариев нет:
Отправить комментарий