McGrew Case Study Hard to Digest

McGrew Case Study Hard to Digest - McGrew |1 Trish McGrew...

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M c G r e w | 1 Trish McGrew BSFR341-E2WW Fraud Examination Beth Hewitt, Instructor September 7, 2009 Billing Scheme Case: Hard to Digest Harold J. Scott had no idea that his name was being forged on checks that Albert Miano was cashing. Harold Scott was the vice president of administrative services and was in charge of many construction project and maintenance services, so it was not unusual for many invoices to be forwarded to him. Albert Miano was the only person to oversee the painting operations in the facilities department, therefore he was the only one who took the invoices into the vice president for a signature approval and then took them to the accounts payables. Miano had the perfect opportunity to commit fraud because there was no segregation of duties. There should have been a procedure where the invoices were independently sent for approval and then they were independently forwarded on to accounts payable. The same person should not have had the responsibility of handling the invoices twice. Since Miano did have the opportunity of handling the invoices, twice he was able to slip the forged invoices in with the others that had already been approved. According to McGrane, Miano was able to pull off the fraud due to failure of internal controls and employees not following standard accounting procedures. When Miano claimed a painter had arrived and needed his check immediately, accounts payable would hand Miano the painters’
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McGrew Case Study Hard to Digest - McGrew |1 Trish McGrew...

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