What’s Your Fraud IQ?

Journal of Accountancy (Andi McNeal, CPA): Nearly all organizations rely on vendors to provide certain goods and services to facilitate their business operations. Whether for repairs or maintenance service, a purchase of office supplies, a consulting engagement, or a large capital contract, the need for vendors is universal—but it also carries an inherent risk of fraud. The same pressures, opportunities, and rationalizations that lead dishonest employees to steal from a company can be catalysts for vendors to engage in fraudulent behavior. Are you familiar with the ways that suppliers and contractors can defraud their customers? Do you know the warning signs of vendor fraud? Take this quiz and find out.

1. XYZ Corp.’s management suspects that a vendor, Green Inc., is intentionally billing the company for the same product order multiple times. Which of the following tests would be most helpful in uncovering such a scheme?

a. Comparing XYZ Corp.’s vendor master list to its employee master list for matching information.
b. Selecting a sample of invoices from Green Inc. and recalculating the totals for each line item.
c. Sorting invoices from Green Inc. by amounts, purchase dates, and delivery dates.
d. Reviewing all purchases from Green Inc. that fall just under internal authorization thresholds.
Continue taking the quiz at the Journal of Accountancy.


New York Post: The extraordinary ‘theft’ of a woman’s NYC home

It’s a case of grand theft house.

A Manhattan woman claims an ex-con stole her family home in Queens by filing a phony deed with the city and moving in.

Now Jennifer Merin is battling in court to remove the convicted armed robber, Darrell Beatty, 49, and his sons, Darrell Kash Beatty, 25, and DeShaun Beatty, 22, from the three-bedroom Tudor she says they snatched in February.

Continue reading at the New York Post.

Mike Rosten to Host Financial Fridays Radio Show October 10th

Tune in Friday, October 10th at 3 pm on KLAV 1230 AM or online, or go to www.PBTK.com on Monday to listen to the most recent Financial Fridays show.  PBTK’s Mike Rosten, CPA, CFE will be co-hosting this week. Our guests will include:

  • Kim Wallin is a native Nevadan and the first CPA to be elected to the office of Nevada State Controller in 50 years.
  • John Restrepo is the Principal of RCG Economics in Las Vegas, Nevada, where he directs the firm’s economic and financial consulting activities.
  • Susan Bruno CPA/PFS/CFP is co-founder of divaCFO.com – she counsels women to “Be Prepared, Not Scared.”
  • Stan the Annuity Man, a.k.a. Stan Haithcock, is a nationally recognized expert on annuities known for his transparency, honesty, and endless research.  He has spoken at every major financial trade show in the United States.

View additional bio information about this week’s guest here: October 10th Show Guide

Whistleblower who got $6 million still on lookout for fraud

Arizona Daily Star: The Tucson woman who earned nearly $6 million as the whistleblower who uncovered overbilling at the Carondelet Health Network is launching her own effort to prevent health-care fraud.

“Providers are turning their heads, not wanting to hear about fraud, waste and abuse,” Jacqueline Nash Bloink said in an interview last week.

Continue reading at the Arizona Daily Star.