In: Accounting
The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145.
Eventually, what will be the effect of her actions? What can the company do to prevent this type of behavior?
Answer in 100 words or more.
Hi I found this question is very interesting below i provided the answer best of my knowledge
Occupation fraud is a growing problem; fraud is not 100% preventable but there are steps that can prevent or chances of fraud reduce on ongoing basis.by this type of fraud company will lose huge amount of money in future even small amount make huge in future, following step should be taken by company to avoid such type of fraud
Hope that about provided solution is sufficient