Assignment
a) Explain how each of the following three conditions could be a red flag for a register disbursement scheme.
Able, a cash register teller, is authorized to approve sales refunds and she is also authorized to make inventory adjustments.
Baker is a cashier who, in the last week, processed 15 refunds. No other cashier processed more than 5 over that same period. Each of the transactions was for between $13.50 and $14.99.
Over 70 percent of the refunds processed by Chase, a cash register clerk, were run on the same date as the original sale.
b) Assume you are a new hire in the accounting department of an organization. One of your responsibilities is the reconciliation of the operating account. After the end of the month you are given a copy of the bank statement and the canceled checks and instructed to perform your reconciliation. You notice there are some faint markings on a portion of the bank statement that could be alterations. What should you look out for in performing the reconciliation?
c) Recently the Speaker of the New York Assembly (Sheldon Silver) was convicted of a $4 million dollar federal corruption charge. Speaker.
Silver served in the post of Speaker of the NY Assembly for 20 years.
For those not familiar with NY politics, the Speaker of the New York Assembly is one of the most powerful persons in NYS government; some may say his power is on par with that of the Governor of New York (nothing comes to a vote in the NYS Assembly, without the Speaker's prior approval, including the state budget).
Do research on the internet on Speaker Silver, and give me your opinion as to why you think someone as powerful as Speaker Silver, would commit fraud. Tie your answer into the either the Fraud Triangle, Fraud Diamond or Fraud Pentagon, if you can.