Fraud Audit Program: Disbursements
1. Shell corporation
a. Invoice general information
i. Trigger red flags
a. Invoice numbers are illogical given the amount of business the vendor provides. For even a small business that works with other customers, it would be considered normal that the invoices received by the organization would have gaps in invoice numbers where the invoice numbers were used for other customers. It would not be considered logical for the organization to receive sequential invoice numbers.
b. The product or service description on the invoice is nonexistent or vague as to specification on the products or services provided. It would be considered normal for a service provider to provide a description with details on what tasks were completed and include hour work, even the people working on the tasks. It would not be considered logical for a service provider to provide a description of “for services performed” without any additional detail.
c. The product number(s) included on the invoice are illogical or nonexistent. For example, electrical component product numbers tend to be at least eight digits, so it would be considered illogical for an electrical component to have a two-digit product number.
d. The invoice was created or entered on off periods, i.e., weekends, holidays, or after hours in a regular duty station. Although it would not be illogical for a three-shift, seven-day-a-week organization to have invoices created or entered ...