Frequent Flier’s Fraud Crashes
1. Citation: Frequent Flier’s Fraud Crashes
2. Broad Issues: Expense reimbursement schemes, as the name occur when employees make a false claims for reimbursement of fictitious or inflated business expenses.
3. Identify individuals involved & their positions in this matter:
Marcus Lane: 35 years old Ph.D. Traveled all over his North and South America for his job as a geologist for the privately held firm specializing in environmental management and engineering services at regional office to Tyler & Hartford. He broke a basic ruled ethics: Never cheat on your expense report.
Heidi Mcllough: An account who worked at Tyler Harford’s East Cost…show more content… When she reviewed all his receipts for the trip two of the receipts stood out. One for car rental, which indicated that the car was picked up by Lane at noon on the day of his flight to San Antonio. The Second was a receipt for lunch at a restaurant located near the San Antonio International Airport, also on the day of the flight. 7. Recommendations to avoid future occurrences of the situation.
After Lane’s fraud was exposed, Williams received full support from senior management for clarification and better enforcement of the policy that all travel for the entire company, including all fifty regional offices, must be booked through the company travel agent using a designated company cried card. “That makes our auditing lives so much easier. It gives us better control, as well as better cost data,” said Williams. 8. Recommendations how to observe the system to dictated type of fraud in the case?
Organizations first, should enforce a policy against accepting photocopies as support for business expenses. This practice will help prevent schemes whereby copies of the same receipt are submitted several times. Second, should be set up to flag duplicate payment amount that are coded as travel and entertainment expense.
9. Recommendations for prevention of similar future situation?
In addition to the prevention and detection methods that have already been discussed, it is particularly important, for dealing with