Payroll fraud is a type of fraud that's not very difficult to find, if there are controls in place. What often happens, however, is that the payroll clerk is well respected and trusted and allowed free reign. The individual in charge of payroll at my ex-husband's former place of employment was fired because of payroll fraud. She'd had her husband and brother on the payroll for over three years, and neither of them worked for the company. Her supervisor didn't review and reconcile the account like he was supposed to, so it wasn't caught until he was replaced and his replacement performed a reconciliation.
When the proper internal controls are in place, this type of fraud is quite simple to detect, as stated. Even ...
This solution explains the controls and other methods that could be implemented to detect payroll fraud.