Term
|
Definition
| An individual on the payroll of a company who does not actually work for the company |
|
|
Term
|
Definition
| A supervisor who neglects to review documents, such as time cards, prior to signing or approving them for payment |
|
|
Term
|
Definition
Which of the following is not a payroll scheme?
a) Creating a ghost employee
b) False refund scheme
c) Falsified hours and salary
d) Commission scheme |
|
|
Term
| Falsifying the number of hours the employee has worked |
|
Definition
| What is the most common method of misappropriating funds from the payroll? |
|
|
Term
| Payroll preparation, authorization, distribution, and reconciliation |
|
Definition
| The separation of what four duties can help prevent payroll schemes? |
|
|
Term
| c) Harkanell managed to steal a large amount of funds from the company by overstating his hours |
|
Definition
Regarding the case study, "Say Cheese", which of the following statements is incorrect concerning Jerry Harkanell's theft of company funds?
a) Jerry Harkanell posted eight hours that resulted in overtime wages during a time of low occupancy
b) Jerry added extra hours to his paycheck because of financial and marital issues
c) Harkanell managed to steal a large amount of funds from the hospital by overstating his hours
d) Jerry immediately submitted his resignation after his act of fraud was discovered
e) Harkanell had a criminal record that was over-looked in the background check |
|
|
Term
| Payroll schemes rank fourth in terms of frequency (below billing, expense reimbursement, and check tampering schemes); and third in terms of median loss (below billing and check tampering schemes) |
|
Definition
| How do payroll schemes rank among fraudulent disbursement schemes in terms of frequency and median loss? |
|
|
Term
|
Definition
Jim works for ABC Company. He steals money from the company by adding additional employees to the payroll (that work for other companies). What type of fraudulent disbursement scheme is this?
a) Falsified hours and salary scheme
b) Ghost employee scheme
c) Commission scheme
d) Expense reimbursement scheme |
|
|
Term
1) Overstating hours
2) Increasing the pay rate |
|
Definition
| What are two methods of falsifying hours and salary? |
|
|
Term
1) falsify the amount of sales made
2) increase his rate of commission |
|
Definition
| What are two ways that an employee on commission can increase his pay? |
|
|
Term
1) commission expenses increase as a percentage of total sales
2) One employee's commissions earned will rise compared to other employees
3) One employee generates a higher percentage of uncollected sales than his co-workers |
|
Definition
| What are some indications of fraud involving commission expenses? |
|
|
Term
| a) Katie was not trusted by her co-workers |
|
Definition
Regarding the case study "The All-American Girl", which of the following statements is incorrect?
a) Katie was not trusted by her co-workers
b) Katie Jordan began stealing from Aramis Properties because of financial difficulties
c) Katie collected paychecks for an employee that recently left the company - she failed to remove his name from the payroll
d) Katie used a ghost employee scheme to earn additional income
e) Her fraud was discovered when Fleming made a surprise visit to the office and asked about Katie's "new assistant" that didn't have a desk... |
|
|
Term
|
Definition
| T/F Katie Jordan, "The All-American Girl", was using company funds to pay for personal expenses including her wedding. The company pressed charges and she was convicted |
|
|
