Lynn Roberts frequently makes purchases from mail‐order catalogs. Recently, she ordered a dress she intended to wear to her cousin’s wedding. Unfortunately, she did not receive the package on time, and on the evening before the wedding, Lynn went shopping and purchased another outfit at a local dress shop.

Lynn’s neighbor, Jake, actually received the mail order package intended for Lynn. Because Jake had been out of town last week, he had not had the chance to promptly bring the package to Lynn’s house. Even though the box correctly showed Lynn’s name and address, it appears that the carrier merely left the package on the doorstep of the wrong house.

Disgusted with this chain of events, Lynn decided to claim that she had never received the package. After all, she was not able to wear the dress for its intended purposes; she should not have to pay for it. Moreover, the carrier was not able to provide proof of delivery.

Required:

a. Discuss which type of fraud is involved in this case, from the perspective of the mail order company.

b. Which of the AICPA Trust Services Principles most closely relates to this situation?

c. Describe a preventive control that could be performed by the carrier to avoid the possible recurrence of this type of fraud.