In one of the case studies in the textbook (page 104), Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices. When Miano received the checks for the phony invoices, he forged the contractor s signature. He then endorsed the check in his own name. How was the fraud caught?

The auditors found a discrepancy in the invoices that were submitted. A vendor received a check by mistake and called the accounts payable department. The external audit found it in an audit sample of canceled checks. None of the above

In one of the case studies in the textbook (page 91), a Southeastern medical college was plagued with fraudulent activity. What started as an investigation into some suspicious expense reimbursement activity eventually led to the discovery of a fictitious company that was set up to fraudulently bill the college for supplies that never existed. What was the first sign that there were more problems than the initial expense reimbursement fraud?

The auditors found an unusually high number of new unapproved vendors. The administrative assistant suddenly left town when requested to be interviewed. The supervisor resigned his position immediately. A tip was received by internal auditors.