Question

How might employees and vendors defraud the company

Need one-two paragraph max... Thank you!!!

Answer 1

Defraud by employees:-

1. Theft of inventories- An employee take the inventory directly or indirectly for personal purpose.

2. Theft of services- An employee takes the services of the company ex might ask company electrician for his personal requirement.

3. Theft of cash - An employee steals the cash from company.

4. Expense reimbursement fraud- Employee asks for reimbursement for personal expenses.

5. Payment fraud- An employee created false vendor accounts and get them paid.

Defraud by vendors:-

1. Bribery - A vendor can give bribe to an employee in exchange of benefits.

2. Overbilling:- A vendor charges for more amount than the value of goods.

3.Price fixing- When company asks for quotation, then group of vendors might fix minimum price.

4. Tampering of check:- A vendor can tamper the check to get more money.

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