Question

Please read the following scenario:

Many of the clients assigned to Amy and Bill have operations in other locations that require frequent travel. On every trip, Bill notices that Amy charges non-job-related expenses to her corporate credit card and submits the charges for payment as part of her travel expense report. The expenditures are then included on the client’s invoice. The expenditures only represent a tiny fraction of total billable services for the client that Amy and Bill are auditing.

Prepare a detailed analysis of the scenario by incorporating your responses to the following questions in well-developed paragraphs (do not use a question-answer format).

1. After reviewing the types of fraud discussed in this week’s reading, determine what type of fraud Amy is committing. Does the relative cost of the expenditures to the overall client’s invoice matter? Why or why not?
2. Develop some assumptions to address why Amy’s transactions have not been questioned. Does Bill have the responsibility to report her? Why or why not?
3. Bill decides to confront Amy first before notifying the engagement partner. Amy acknowledges wrongdoing and agrees to repay all of the expenses. Should Bill still report her or should he consider the situation resolved based on her words? Discuss the ramifications of both options.
4. What theories of fraud did you implement in your analysis of this scenario? Include a discussion of the seriousness of fraud and how fraud affects organizations.

Requirements:

• Write a paper of 4-6 pages in length (double-spaced), not counting the title and reference pages, which you must include.
• Use terms, evidence, and concepts from class readings, including professional business language.

Answer 1

Does the relative cost of the expenditures to the overall client’s invoice matter? Why or why not?

Yes,The relative cost of the expenditures to the overall client’s invoice matter as it increases the overall bill amount to the client. In this competitive world, Every single cost charged to customer has its importance as it may end up losing the customer if he finds someone better who is charging less for the services rendered.

Develop some assumptions to address why Amy’s transactions have not been questioned. Does Bill have the responsibility to report her? Why or why not?

Amy's transactions might not get questioned because of the ignorance level of her reporting boss.

It also have not been questioned because of her ability to hide the expenses wisely.

There can also be the reason that Amy would be a star performer and company does not want to loose her therefore they keeps ignoring her cheatings

Yes, Bill definitely have a responsibility to report Amys frauds as the first dedication of bill shall be towards the organisation.

Bill decides to confront Amy first before notifying the engagement partner. Amy acknowledges wrongdoing and agrees to repay all of the expenses. Should Bill still report her or should he consider the situation resolved based on her words?

Even though Amy has assured bill to not repeat the same thing again in future and will also repay all of her expenses to the company which she has falsely got reimbursed.but bill can not merely trust her and leave her as she can repeat the same thing again in future in the absence of bill. hence he shall report her wrong doing to the organisation ASAP.