Case Question 1 [10 marks]

MINI CASE QUESTIONS:

A) A public health nurse visits senior citizens as part of her duties. Occasionally she will do small shopping trips to the local grocery store for her patients, paying by cash. Her patients appreciate this and give her tips as this is above and beyond her job.

What is the potential for fraud here and what red flags could be associated with this practice? What policies should be in place to restrict this behavior? [3 marks]

B) Joes owns a local corner store and hires two employees to run the shop. One employee's job is to be a cashier and to transfer the money made from the till into the local safe at the end of the day while the other employee's job is to restock items and preform general cleaning of the store. One night after the corner store had already closed due to operating hours Joe saw from the cash register that they had made $300 that day, however upon opening the safe he realized that only $200 had been deposited into it therefore leaving $100 missing.

What were the mistakes made by Joe that led to this and what controls could be implemented to prevent something like this from occurring again? [3 marks]

C) TriCity is a small IT company located in Vancouver, BC with 15 consultants. Each consultant is required to fill their own timesheets and submit them to the manager, Ruby, for review and approval. As the company is short staffed, Ruby is often very busy managing the accounting and recruiting new staff. Ruby claims that she does not have time to verify the number of hours the consultants submit every month, but trusts her team. Jake, a junior consultant, has been submitting falsified timesheets for the past two months with additional hours.