Hi Tutors,

Please help me proofread my case memo below and make sure I included the following questions. Thank you!

a.What is the scheme being perpetrated?

b.How would the act be perpetrated?

c.Who is a list of suspects?

In my opinion, Johnson Real Estate (JRE)'s employees can be the perpetrators for receivables skimming schemes.Joan Rogers and Doris Chambers are the two employees at JRE. Therefore, they are my suspects for the case.They could have stolen the missing deposits.According to the background investigation reports, they are not making enough money from JRE.I noticed that Joan Rogers has more debts and mortgage payments.

Joan Rogers is the office manager, and she has too much control over both ends of the receipting process.She has the ability to collect and deposit the monies to JRE checking accounts by preparing & making the deposits, recording the deposits in the company's books, and reconciling the bank statements.In a small company likes JRE, an employee carries many hats and responsible without separation of duties.Since she knows JRE doesn't have internal control to detect stealing monies from the deposits, she can launder money from the company deposits and cover it by making false entries in the books that correspond to her falsely prepared deposit slips.To prevent and detect money larceny from the commission deposits, JRE must separate duties for the person who prepares the deposit slip. It can be separated from the duty of receiving and logging incoming payments.Furthermore, Ashley Johnson needs to reconcile its bank statement regularly and carefully to catch this type of fraud.