Nader, an accountant in a bookstore, had an unusual interest in the mail, he was often known to greet the postal carrier at the door to receive the days delivery, take it to the mail closet, then immediately remove selected envelopes and parcels and take them to the privacy of his own ofce. Other times, he would request hand delivery of incoming payments, circumventing the mail closet altogether. These activities resulted in the loss of thousands of dollars for the bookstore, Mr. Nader was intercepting checks written to the bookstore and endorsing them to his personal bank account. The procedural manual for Cloves accounting department described mailroom policies, including the requirement for Nader to log checks into a computer le and prepare a receipt. Also he was responsible for preparing an independent verication of the amount of the receipts, and do bank deposit.

Read the above case and choose the best answer of the following:

The request to send all funds to the bookstore as money transfer instead of checks or cash would be considered as: *

Direct control

Detective control

Corrective control

None of the answers

The fraud type would be: *

Employee Fraud

Corporate Fraud

Management Fraud

Personal Fraud

The following action by Nader had an unusual interest in the mail, he was often known to greet the postal carrier at the door to receive the days delivery, take it to the mail closet, then immediately remove selected envelopes and parcels and take them to the privacy of his own ofce is a violation of internal control in : *

Access control

Transaction authorization

Accounting records

Not a violation of internal control

The fraud would be considered as: *

Asset misappropriation

Bribery

Economic Extortion

Fraudulent statements

The following action by Nader responsible for preparing an independent verication of the amount of the receipts, and do bank deposit is a violation of internal control in: *

Segregation of duties

Accounting records

Access control

Not a violation of internal control