My first Magazine AC 465 All Assignments | Page 11

11-9: What is meant by inventory “skrinkage?”
12-2: What is a shell company and how is it formed?
12-5: What are the differences between forged maker and forged
endorsement schemes?
12-7: What is a ghost employee, and what are four steps needed to
make such a scheme work?
12-9: What red flags are commonly associated with fictitious expense
schemes?
12-10: How do fraudulent disbursements at the cash register differ
from other register frauds?
Part 2: Short Case:
Vikkie was the only accountant for a small-town land development
company. She was terminated when the company fell on hard times.
One year later, when the owner of the company was reviewing the
payments received from a land-owner for development cost, he
discovered that they were five payments behind for a total of $150,000.
He contacted the land owner who showed him the check stubs and
cancelled checks. After further research he found that the account in
which the checks were deposited belonged to Vikkie, his former
accountant.
What type of fraud did Vikkie commit?
What actions should be taken against Vikkie?
How could this fraud have been prevented?