Assignment 3-4 Billing Scheme Case

Assignment 3-4 Billing Scheme Case - 1Assignment 3-4...

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1Assignment 3-4 Billing Scheme Case Megan Matthews ACCT341-E1WW Professor Filler January 28, 2012
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2Assignment 3-4 Measures to Prevent the Fraud Albert Miano was a 35 year old man from New Fairfield, CT, and earned about $30,000 a year. His job as a construction coordinator was to coordinate time and materials contracts with the scores of painters, carpenters, electricians, and plumbers who toiled daily on the renovation, repair, and construction of the magazine publishing plant. Over the course of four years, Miano managed to forge endorsements on more than fifty checks totaling $1,057,000! There are some measures that could have been taken to detect or prevent the fraud committed by Miano. Miano launched his scheme by crafting false invoices for the jobs done by the painters. He would take a legitimate copy of a trade invoice, and run copies of them off his home computer in which he would record slightly different hours. He regularly brought invoices into the administrative VP’s office for signature approval, and return in a couple days to collect them and deliver the invoices to the AP. (a perfect opportunity to slip in the fraudulent invoices he created). And lastly Miano had people so trusting of him, that he was able to call the accounts payable department, and claim that a carpenter or painter had arrived and needed his check immediately. Miano would then collect the check for himself. According to the auditor,
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Assignment 3-4 Billing Scheme Case - 1Assignment 3-4...

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