A Report on the Investigation on the Allegations against a Plant Essay

A Report on the Investigation on the Allegations against a Plant Employee of an Acquired Corporation, Lakes Inc - Essay Example The investigation landed on a big clue, which made it clear that the offence was done in the preparation of invoice for purchase of items. From this case it was found that actually, the invoice was supposed to be prepared for purchasing high definition flat screen television but the prepared invoice was in the name of a computer server. The investigation is carried out from August to November 2009. In the mean time, it was also found that the employee has submitted the invoice through the purchase department for a refund amount of $8,795.60. Due to this issue, the director of purchasing department, Mr Bob Smith, and the administrative assistant, Ms Mary Bad, had to be terminated from the company. The company maintains a database for all the items they purchase and a particular code is fixed for the items, which relates to the work done by the administrative assistant. As part of the investigation, a visit was made to all the stores from where the goods were purchased. The manager of one store said that in the past six months, Bob Smith had done two more purchases and these items were delivered either to him or his assistant. He showed the invoices of these items that had been purchased. When comparing these with the plant invoices, the file had only copies. Everything in the invoice except the name of the items was similar. The director of the purchasing department and the administrative assistant are the culprit in this case. They cheated the company and this had been continuing for several years. The invoices, the proof and the statement of the store manager have been apt evidences for this particular investigation. Bob Smith and Mary Bad were cheating the company by making false invoices and purchasing costly items with the company’s earnings. They might even resell these items at a higher price and make more profits out of it. The case is found to be misappropriation on purchasing the asset. There are various schemes for asset misappropriation such a s â€Å"skimming, cash larceny, fraudulent disbursements, and non-cash larceny and misuse† (Albrecht n.d pg 2). Misappropriation of the Asset Fraudulent Disbursement Scheme From these schemes, the one, which is similar to the case under study here, is the fraudulent disbursements scheme. Asset misappropriation schemes consist of â€Å"those frauds in which a perpetrator employs trickery or deceit to steal or misuse an organization’s resources† (Albrecht n.d pg 1). In this case, both the director and his assistant have taken assets of the organization to benefit themselves. Here, misappropriation of assets occurred during the purchase of goods and services. The organization pays extra for purchased goods and services, as all of them were not used in the plant. It includes a billing scheme, which involves employers making payments based on false invoices for personal purchases as done by Mr Bob Smith and Ms Mary. Such type of asset misappropriation frauds are seri ous enough, which result in material misstatement of the financial statements of the organization, without the knowledge of the management. Finally, the company incurs a huge loss and a lot of damages. Final Results of the Investigation Asset misappropri