examining documents such as letters, invoices, orders and other documents
that are generally received through the mail, check if they have the folds
that you would expect for them to fit in an envelope.
they do not have the folds they may not have been received through the
mail and may have been put into the payments system as part of a staff
photocopies of invoices, receipts, orders and so on are used instead of
the original you should find out why.
photocopies are used in expense frauds where the original document has
already been used to claim expenses.
photocopies may also be used because the original document has been
altered and the alteration has been disguised on the copy.
Payments to Staff
comparison of accounts payable staff addresses with vendor addresses will
show frauds where staff are making payments to themselves through
Period End Fiddles
local management are under pressure to produce results to meet their
budgets, quotas are key performance indicators. They may fiddle the
results when they have not been able to obtain them legitimately.
this is done after a trial balance or set of draft financial statements
has been produced.
especially for entries posted after the trial balance or draft financial
statements have been produced.
is because they first find out how far from the target they are and then
put through the fraudulent entries to get to the target.
are a number of ways of finding situations where tenderers get together
and fix the price that you will pay for the contract. These include:
documents are often taken as accidents or systems problems and ignored. In
many cases the documents are missing because they have been used in a
fraud and the perpetrator has destroyed the evidence.
For more tips, advice and practical pointers see Fraudproof Your Business Manual.