To identify the type of fraud in the following cases: Marcus pays $30 for a baseball of $70 by changing the price-tag. Craig loses $500 by investing in a multilevel marketing scheme. A bank employee diverts the amount from a wealthy customer’s account to his personal account. The bank was held responsible for the act of the employee. A CEO showed profits for the year 2018, when there was a loss of $150 million. The CEO was held responsible and convicted with jail and fine. The government lost $50 million as it was overcharged by contractor and sub-contractors in the Middle East for fictitious hours and assets. A student accessed the school computer and changed her school grade to be accepted into graduate school.

Question

Consider each of the following situations. Is there a potential problem? Which part of the fraud triangle is involved, if any? A. Susan is an accounts payable clerk. She sets up creditors in a financial database and pays invoices as they come in. Last year, she won employee of the year and is a valued employee. Through the grapevine, Susan's boss just learned that Susan's brother has a gambling problem. B. Now suppose that Susan from situation A is now secretary for the head of the marketing department. She keeps track of the vice president of marketing's schedule and handles the correspondence. C. Keith has been employed for 6 months as a teller at a community bank. All is going well, and his cash drawer has had shortages only twice (of less than P500). The shortages were traced and the problems corrected. D. At the company Memorial Day picnic and golf outing last week, Nancy noticed that June moved her ball to a better lie when she thought no one was looking. There…

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Chapter 1, Problem 3SC

To determine

To identify the type of fraud in the following cases:

Marcus pays $30 for a baseball of $70 by changing the price-tag.

Craig loses $500 by investing in a multilevel marketing scheme.

A bank employee diverts the amount from a wealthy customer’s account to his personal account. The bank was held responsible for the act of the employee.

A CEO showed profits for the year 2018, when there was a loss of $150 million. The CEO was held responsible and convicted with jail and fine.

The government lost $50 million as it was overcharged by contractor and sub-contractors in the Middle East for fictitious hours and assets.

A student accessed the school computer and changed her school grade to be accepted into graduate school.

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