Let's suppose you are an accounts payable clerk for a small home‐improvements contractor. This morning one of the site supervisors submitted an invoice requesting immediate payment to a new vendor for items he claims were delivered directly to a work site. The supervisor attached a note to the invoice asking that the check be returned to him upon issuance so that he could personally deliver it to the vendor. This would ensure the timeliness of future deliveries. He claims that unless the payment is made immediately, there will be delivery delays on items needed to complete this job, as well as delays on items for another contract in progress. Although you are suspicious of this unusual request, you are tempted to accommodate it. You know that timely completion and collection on these contracts is critical to the company's production scheduling and cash management. Moreover, the company president is on vacation and therefore not available to grant special authorization for this payment. In a one (1) page response, speculate on the type of fraud that could be in process here. What (if anything) could a person do to ascertain the propriety of the transaction and still make the payment today?
Let's suppose you are an accounts payable clerk for a small home‐improvements contractor. This morning one of the site supervisors submitted an invoice requesting immediate payment to a new vendor for items he claims were delivered directly to a work site. The supervisor attached a note to the invoice asking that the check be returned to him upon issuance so that he could personally deliver it to the vendor. This would ensure the timeliness of future deliveries. He claims that unless the payment is made immediately, there will be delivery delays on items needed to complete this job, as well as delays on items for another contract in progress. Although you are suspicious of this unusual request, you are tempted to accommodate it. You know that timely completion and collection on these contracts is critical to the company's production scheduling and cash management. Moreover, the company president is on vacation and therefore not available to grant special authorization for this payment.
In a one (1) page response, speculate on the type of fraud that could be in process here. What (if anything) could a person do to ascertain the propriety of the transaction and still make the payment today?
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