Payroll Scheme
A. What measures could have been taken to prevent the fraud committed by Katie Jordan or detect it earlier? o Aramis Properties clearly fell victim to a ghost employee payroll scheme perpetrated by Katie Jordan. (Wells, 2014) The company could have prevented or detected the crime earlier if they added a few measures that strengthen their internal controls. Like most companies that fall victim to fraud, the mangers placed too much trust, in an employee, Jordan’s boss Gil Fleming is no exception. Fleming’s trust in Katie was the opening that paved the way to this crime. In this case poor supervision, and employee documentation provided the opportunity Katie needed. The First measure that could have be incorporated into Aramis’s internal …show more content…
By doing so, Amaris would make it difficult to carry out this type of scheme. Employee documentation is an important aspect to preventing ghost schemes, because Amaris did not have proper/up to date documentation on each employee, Katie successfully carried out her scheme. If Aramis would do quarterly employee reviews carried out by their HR department, these fictitious employees could have be caught. Adding internal auditors to check for any irregular spikes or drops in the accounts payable in relation to the amount need to pay the employees (salaries and wages), they could have investigated the issue causing this rise, detecting the crime. Fleming could have required that employee hiring were overseen by higher management, therefore Katie would have never been able to hire “Wendy”. By segregating Katie’s duties involving the preparation of
A. What measures could have been taken to prevent the fraud committed by Katie Jordan or detect it earlier? o Aramis Properties clearly fell victim to a ghost employee payroll scheme perpetrated by Katie Jordan. (Wells, 2014) The company could have prevented or detected the crime earlier if they added a few measures that strengthen their internal controls. Like most companies that fall victim to fraud, the mangers placed too much trust, in an employee, Jordan’s boss Gil Fleming is no exception. Fleming’s trust in Katie was the opening that paved the way to this crime. In this case poor supervision, and employee documentation provided the opportunity Katie needed. The First measure that could have be incorporated into Aramis’s internal …show more content…
By doing so, Amaris would make it difficult to carry out this type of scheme. Employee documentation is an important aspect to preventing ghost schemes, because Amaris did not have proper/up to date documentation on each employee, Katie successfully carried out her scheme. If Aramis would do quarterly employee reviews carried out by their HR department, these fictitious employees could have be caught. Adding internal auditors to check for any irregular spikes or drops in the accounts payable in relation to the amount need to pay the employees (salaries and wages), they could have investigated the issue causing this rise, detecting the crime. Fleming could have required that employee hiring were overseen by higher management, therefore Katie would have never been able to hire “Wendy”. By segregating Katie’s duties involving the preparation of