Essay on The Corporate Con
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 …show more content…
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