Management and Organizational Studies 3367A/B Lecture Notes - Lecture 4: Bank Regulation, Rubber Stamp, Sick Leave

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3367A/B
• Professor: weingartner

Document Summary

Occupational frauds in which a person who works for an organization causes that organization to issue a payment by making a false claim for compensation: ghost employee schemes, falsified hours and salary schemes, commission schemes. Someone on the payroll who does not actually work for the victim company: fictitious person, friend or relative, accomplice, other. Adding the ghost to the payroll: through the personnel department, through the hiring department, through the payroll department, using names similar to real employees, failing to remove terminated employees from the payroll. Collecting timekeeping information: fake timecards, approval of timecards, computerized timekeeping systems, salaried workers vs. hourly workers. Delivery of the paycheck: hand delivered, mailed to the e(cid:373)ployee"s address, direct deposited. Separate the hiring function from the payroll function. Personnel records should be independently maintained from payroll and timekeeping functions. Personnel department should verify any changes to payroll. Background and reference checks should be made in advance of hire.