Question

In the case study involving Bob Walker at the beginning of this chapter, what type of register disbursement schemes did he commit? Discuss the role his ¬recent demotion played in the scheme

Answer 1

Bob Walker committed fictitious refund and overstated refund schemes. In both cases, he took money from the cash register and wrote fake cash refunds by recording either fictitious or real names and telephone numbers in the refund log. With the use of real names, he simply altered legitimate refunds that he had issued earlier in the day.Shortly before the scheme began, Walker was demoted and received a pay cut. This likely provided the rationalization Walker needed to commit the scheme. Recall that under the Fraud Triangle model, there are three factors that are typically present when an employee commits fraud. A non-shareable financial need, a perceived opportunity, and a rationalization. Wanting to get even with one’s company for perceived unfair treatment is a common rationalization that is used to justify fraud. Indeed, when confronted about his crime, Walker referred to his managers who had “unjustly” demoted him.

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