Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to classmates or your faculty member.
Respond to the following in a minimum of 175 words (replies also need to be a minimum of 175 words each):
Respond to the following:
Many companies are unaware of unethical and fraudulent transactions. An Association of Certified Fraud Examiners study showed that “two-thirds of all employee thefts involved a fraudulent disbursement by an employee. The most common form of fraud (24.9% of cases) was fraudulent billing schemes (usually this involves the employee having the company issue a payment to the employee by submitting a bill for something that never happened such as nonexistent goods or services, purchases of personal goods by the employee, or inflated invoices).” The following chart shows different types of fraudulent disbursements and the median loss from each.
Category Median Loss % of cases
Billing $100,000 24.9%
Expense reimbursement $ 26,000 14.5%
Check tampering $143,000 11.9%
Payroll $ 48,000 9.3%
Source: 2012 Report to the Nation on Occupational Fraud and Abuse, Association of Certified Fraud Examiners, www.acfe.com/uploadedfiles/ACFE_website/content/rttn/2012-report-to-nations.pdf, p. 12..
Kimmel, Paul D., Weygandt, Jerry J., Kieso, Donald E. (2013). Financial Accounting: Tools for Business Decision Making, 8th edition, John Wiley & Sons, Inc., Hoboken, NJ
How can companies reduce the likelihood of fraudulent disbursements?
Reply to at least two of your classmates. Be constructive and professional in your responses.
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