October 2013
Beginner
544 pages
20h 52m
English

EXHIBIT 6-1
After studying this chapter, you should be able to:
| 6-1 | List and understand the three main categories of payroll fraud |
| 6-2 | Understand the relative cost and frequency of payroll frauds |
| 6-3 | Define a ghost employee |
| 6-4 | List and understand the four steps of making a ghost employee scheme work |
| 6-5 | Understand how separation of duties in payroll and human resources functions can reduce the threat of payroll fraud |
| 6-6 | Be familiar with methods identified in this chapter for preventing and detecting ghost employee schemes |
| 6-7 | List and understand the four ways that employees can obtain authorization for a falsified time card in a manual system |
| 6-8 | Understand the role that payroll controls play in preventing falsified hours and salary schemes |
| 6-9 | Discuss the methods identified in this chapter for preventing and detecting falsified hours and salary schemes |
| 6-10 | Understand how employees commit commission schemes |
| 6-11 | Identify red flags that are typically associated with commission schemes |
| 6-12 | Be familiar with proactive audit tests that can be used to detect various forms of payroll fraud |
Every once in a while, a person devises a fraud scheme so complex that it is virtually undetectable. Intricate planning allows the person to cheat a company out of millions of dollars with little ...