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    Fraud Examination: Developing an Appropriate System of Controls

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    Required

    Provide an example of how a fraud could be perpetrated in one of the following types of fraud:
    • Billing
    • Check tampering
    • Payroll schemes

    And 1) design an internal control to prevent it and 2) assuming it escaped detection by existing
    Internal controls, how might you detect it after it's happened?

    © BrainMass Inc. brainmass.com October 10, 2019, 6:38 am ad1c9bdddf
    https://brainmass.com/business/external-auditing/fraud-examination-developing-appropriate-system-controls-551321

    Solution Preview

    Fraud Examination

    Required

    Provide an example of how a fraud could be perpetrated in one of the following types of fraud:
    • Billing
    • Check tampering
    • Payroll schemes

    And 1) design an internal control to prevent it and 2) assuming it escaped detection by existing
    internal controls, how might you detect it after it's happened

    The most common fraud based on an employee misappropriation of cash is as follows: check tampering, revenue skimming, fraudulent disbursements by fake invoicing, payroll schemes and billing scams. Let's examine a billing fraud in the form of larceny and embezzlement at the time of billing. In our example, a ...

    Solution Summary

    The expert develops an appropriate systems of controls for fraud examinations. The escaping detection by existing internal controls are assumed.

    $2.19