Question

Last month, two employees were terminated for submitting fraudulent timesheets which were approved and paid through the accounting system. The leadership team expressed concern that this practice could be widespread. As a financial accounting manager at Waterbag Inc., you were assigned to a project to identify solutions to prevent recurrences.

Using the terms accounts payable fraud cases or payroll fraud cases, find a recent example or examples of cases involving accounts payable or payroll. Based on your research, what recommendations would you share with the leadership team to improve both departments? Explain your answer.

Make sure you select a different case from your classmates.

Answer 1

Given Information :-

Two employees were terminated for submitting fraudulent timesheets which were approved and paid through the accounting system.leadership team expressed concern that this practice could be widespread. Financial accounting manager at Waterbag Inc.,ect

Answer :-

* Forestall time sheet Fraud *

The Financial Accounting supervisor ought to prescribe a period administration framework, which will be incorporated with a Human Capital Management framework (HCM).

They ought to introduce biometric participation framework to record the participation of the workers. The workers will utilize either unique mark participation or iris scanner. I prescribe having the unique mark participation framework as the iris scanner is similarly costly.

Further, the human capital administration framework will be outfitted with a period card for every representative. There might be representatives who work in various moves and in addition the distinctive planning. Additionally, the time card can deal with the worker has the qualification for extra time installments.

For instance; Some cleaners will work after ordinary available time. So the time card for the cleaner will be set after office hour. Furthermore, time card for an assembly line laborer may change from the typical working hours for the workplace representatives.

In the event that a representative is on leave, he ought to apply for the leave application through the HCM worker entrance and the demand will experience different endorsement work process lastly get the endorsement.

• The HR office will examine the time records from the machines to ensure that the intention is accomplished.
• In the occasion, if a representative neglected to record the participation, he should ask for a reason through the HCM framework and his line director ought to favor the demand to get the reason in an impact.
• Amid the finance handling time, the HCM framework will compute the truant days, the late entry of the worker, early takeoff of representative and if the occasion isn't upheld either by a leave application or reason ask for he will get a compensation finding.
• Cautioning letters will be issued to representatives if such occasions are repeating in continuous months.

Essential Point to Note; The specialist to enroll the unique mark and connecting with the worker records should vest with a free gathering like the IT division. Something else, there is a shot of misrepresentation by enlisting in excess of one finger of a prompt worker, so the latecomers or missing representatives can connect their worker records with different fingers of the reliable representative to record the participation for their sake.

* Case of Fraud In the Payroll Department *

Counterfeit/Ghost Employee :-

An apparition representative is a phony worker record made by an exploitative representative in finance division or HR division with the goal to be paid through finance. As a rule, this untrustworthy worker gives either his financial balance points of interest or his nearby relatives' ledger subtle elements in the finance so he can get paid through the financial balance.

A similar episode can be there in the provider installment (creditor liabilities) division additionally by making counterfeit provider records and process counterfeit solicitations through this record and be get paid through the bank exchange to the individual ledger.

* Suggestion to Improve the Accounts Payable or finance division *

1. Segregation of Duties :-

" Isolation of obligations implies a solitary worker ought not play out an entire exchange cycle".

For Example; Employee creation is an exchange. This exchange ought to be started by a preparer, who is typically an information passage representative in the HR office. When he readies the records it goes to an analyst and he audits the exactness of information section by contrasting and affirmed reports by the administration. At that point it goes to the approver to at long last support and add the record to the HR records like representative database and finance.

2. Employee Job revolution :-

• Representative occupation turn is a method received by administration to profit worker and additionally the business.
• Occupation Rotation implies representatives in a similar division will play out the activity of another worker for a specific timeframe.
• The advantage of this for the worker is he can enhance his insight and aptitudes in the other activity of another representative in his division.
• The advantage for the organization or boss is, through the pivot the worker in the new part may distinguish a few bad behaviors or extortion by the current representative.