REGISTER DISBURSEMENT SCHEMES
After studying this chapter, you should be able to:
|8-1||Explain what constitutes a register disbursement scheme|
|8-2||Differentiate register disbursements from skimming and cash larceny schemes|
|8-3||List the two basic categories of register disbursements|
|8-4||Explain how false refund schemes are committed|
|8-5||Explain how false void schemes are committed|
|8-6||Understand how register disbursement schemes cause shrinkage|
|8-7||Discuss the methods by which fraudulent register disbursements are concealed|
|8-8||Understand the methods identified in this chapter for preventing and detecting register disbursement schemes|
|8-9||Be familiar with proactive audit tests that can be used to detect register disbursement schemes|
CASE STUDY: DEMOTION SETS FRAUD IN MOTION1
Following a demotion and consequent pay cut, Bob Walker silently vowed to even the score with his employer. In six months Walker racked up $10,000 in ill-gotten cash from his employer, who was caught completely off-guard, before someone blew the whistle.
The whistleblower was Emily Schlitz, who worked weekends as a backup bookkeeper at a unit of Thrifty PayLess, a chain of 1,000 discount drugstores crossing ten Western states.
One October, while reviewing her store's refund log, Schlitz noticed an unusually large number of protocol breaches by ...