Explain how can fraud happen in case-in-point 10.1 and figure 10.3.

CHAPTER 10 / Computer Controls for Organizations and Accounting Information Systems 311 11:00 a.m. Logical Systems Scraping Access Order Order ERP Check Material Inventory Released Scraping Separate systems make organizations vulnerable! Greg Check Load Ship Access Scrapped Material for Scrapped Warehouse Material Shipping Material 8:00 p.m. Physical Systems FIGURE 10-3 Diagram of the example in Case-in-Point 10.1. Case-in-Point 10.1 Assume Greg Smith is authorized to scrap inventory. He also has an access badge for the warehouse where the scrapped inventory is located and can enter the warehouse after hours. Although independently these actions are not particularly interesting. when combined they create a wide variety of problems that could go unnoticed if the physical and logical security systems are not integrated-such as fraud, which could lead to misstated financial statements