Question - 1

Fraud headline: Bank employee charged with stealing $3.5 million after 'high value transfer' discovered

Major Fraud Squad detectives have charged a 37-year-old Perth bank employee with stealing $3.5 million. The Belmont bank recently identified a high-value transfer, and following an audit a number of discrepancies were identified, police said. It is alleged the money was stolen while the man was employed by the bank between June 2016 and February 2018. The Mount Lawley man has been charged with one count of stealing as a servant and was set to appear in the Perth Magistrates Court today. On investigation other information came to light:

The 37 year-old joined the bank in 2016 with an excellent resume in the banking and investment sector in the Northern Territory. He was always complaining about the high cost of living in Perth compared to the NT. He was well groomed, had an extravagant life style and had recently bought an expensive mansion in Mount Lawley.

Q(a) Referring to the above case, describe the type of fraud the bank employee committed and relying on the fraud triangle, explain why the fraud was able to occur.

Q (b) Explain the role of corporate governance in the detection of fraud and give examples of fraud detection measures.