A small but growing firm has recently hired you to investigate a...
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Accounting
A small but growing firm has recently hired you to investigate a potential fraudthe firm suspects its purchases journal clerk of periodically entering fictitious acquisitions. The nonexistent supplier's address is given as a post office mailbox, which the clerk has rented. The clerk forwards notifications of fictitious purchases for recording in the accounts payable ledger. Payment is ultimately mailed to the mailbox. The clerk then deposits the checks in an account in the name of the nonexistent supplier.
Describe the terms "fraud," "fraud deterrence," "fraud detection," and "fraud investigation."
From the given scenario, list four redflag indicators that might point to the existence of fraud. Provide personal factors only.
From the given scenario, list two procedures you could follow to uncover the clerk's fraudulent behavior.
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