Management and Organizational Studies 3367A/B Lecture Notes - Lecture 10: Abundant Number, Internal Control, Intrusion Detection System
16 Dec 2015
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Document Summary
Invoices for goods that are fake or overpriced. Attacking the purchasing function of the victim company. Divert business to vendors vendors bribe to ensure steady business, no incentive to provide quality, usually overpays. Vendor submits inflated invoices, overstates costs of actual goods, ability to authorize purchase is key to scheme(employeees have. Hard to detect since victim company is attacked in two directions(employees lacking approval authority: other kickback schemes. Funds can be paid from other accounts or paid as consulting fees. Look for high quantities purchased, inventory shortage, inferior goods, compare to the budget. Assign independent employee to review buying patterns. Written policy prohibiting soliciting or accepting any gift or favor from. Right to audit clause customer or supplier forbid engaging in transaction on behalf of company in which they have an undisclosed personal interest. Ethics policy that says there"s grounds for termination. All bidders are supposed to be on even playing field.
