Questions 1. How does occupational fraud and abuse differ from other kinds of fraud? Give examples of other fraud types. How does "fraud examination" differ from "forensic accounting"? 2. Define what type of fraud occurred in your specific case that you submitted in your first current event report last week. Use the fraud tree to determine the type of fraud. Be specific, cite your sources, and justify your answer. 3. Cressey's "fraud triangle" states that three factors- non-shareable financial need, perceived opportunity, and rationalization--are present in cases of occupational fraud. Which of these three factors, if any, is most important in causing executives, managers, and employees to commit occupational fraud? If you suspected skimming of sales at the cash register, what is one of the first things you would check? 4. Assume that a client who owns a small apartment complex in a different city than where he lives has discovered that the apartment manager has been skimming rental receipts, which are usually paid by check. The manager endorsed the checks with the apartment rental stamp, then endorsed her own name and deposited the proceeds into her own checking account. Because of the size of the operation, hiring a separate employee to keep the books is not practical. How could a scheme like this be prevented in the future? I 5. In the Chapter 3 case study of Stefan Winkler, chief financial officer for a beverage company in Florida, how did he conceal his skimming scheme? How could the scheme have been prevented or discovered? 6. What is the difference between cash larceny and skimming? 7. What are the five methods discussed in Chapter 4 that are used to conceal cash larceny that occurs at the point of sale? Explain how each works. 8. If a fraudster does not have legitimate access to check stock, he must obtain access to the check stock in order to commit a forged maker scheme. What are some ways blank checks can be fraudulently obtained, and what measures could an organization take to prevent this from occurring? 9. In the Ernie Philips case, $109,000 was stolen through check tampering. How was this scheme accomplished, and what could management have done differently to prevent the scheme from occurring? 10. Explain how each of the following three conditions could be a red flag for a register disbursement scheme. A. Able, a cash register teller, is authorized to approve sales refunds; he is also authorized to make inventory adjustments. B. Baker, a cashier, processed fifteen refunds in the last week. No other cashier processed more than five during that same period. Each of the transactions was for between $13.50 and $14.99. C. Over 70 percent of the refunds processed by Chase, a cash register clerk, were run on the same date as the original sale.