Essay on The Corporate Con

1112 Words Apr 19th, 2012 5 Pages
Courtney Newcomer
Professor Poirier
Acct 3040
November 2, 2011

The Corporate Con: The Internal Fraud and The Auditor In the movie the Corporate Con: The Internal Fraud and the Auditor there were several different people who seemed like your everyday "Joe," but were actually criminals who committed fraud. Some of the frauds committed in this movie were: Cash Fraud, Accounts Receivable Fraud, Expense Fraud, purchasing fraud, and corruption. Focusing on two individuals Pam and John, each of these criminals committed either cash or accounts receivable fraud. Pam was a graduate from high school who found work soon after graduation. She felt she wasn't getting paid enough for her work so she started stealing cash from the
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In her interview she admits that had she known about the company doing so, she most likely would not have taken money at all. Although its recommended that employees should know about a company doing periodic cash counts, its important that the employees do not know when they are going to happen, that way if something is going on, they will catch it and the employee can't try to hide and and keep doing it again.

Another type of fraud scheme that was in the movie was accounts receivable schemes. One of the people that were in the movie that committed this crime was John Faulkner. The four basic schemes that are committed in accounts receivable are: lapping, fictitious sales with corresponding accounts receivable, diversion of payments on old written off accounts, and borrowing against accounts receivable. The two main fraud schemes are lapping and fictitious sales. Lapping is the recording of a payment on a customer's account sometimes after the payment was received and fictitious sales are a by-product of fictitious sales, which often make financial statements appear better than they actually are. In the movie John was caught for borrowing against accounts receivable.

Borrowing against accounts receivables usually deals with employees using the companies receivables as collateral for their own personal use, which is similar to employees using the company's investments for the same purpose. In the vidoe John accidentally figured out how to make loans using

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