On a warm day in early July 2016, Sarah Jane sat in her office at ISBD Corp, preparing a routine travel expense reimbursement request form, attaching documentation in support of the costs of the air ticket portion of her planned trip, which she had purportedly booked recently and paid for using her personal credit card. After signing the form, Sarah Jane walked to the office of the Chief Financial Officer (CFO) to ask for his approval of the requested reimbursement. The CFO, who knew Sarah Jane well and had worked with her at a previous company, asked Sarah Jane how she was doing. He quickly glanced at the documents, not bothering to inspect them or review the total cost of the trip. The CFO initialed the form and gave it back to Sarah Jane who then went to see Alex, the accounts payable clerk. She wanted Alex to process her travel expense reimbursement request and approve the wire transfer of $6,250 into her personal bank account. Alex, who also worked with Sarah Jane at the prior company, was only too happy to assist her with what he considered a routine task. He paid no attention to any of the details connected with the travel expense reimbursement request. Alex immediately initiated the wire transfer, filed the documents into Sarah Janes folder for her trip and then moved on to the rest of his busy day.

Requirements:

What type of fraud(s) could be or is/are being committed (Be Specific)?

What procedures could have been implemented to prevent this fraud?

What procedures could have been used to detect this fraud?