Read the following scenario and answer the three questions that follows:

Sue was an employee with a local high-tech company and responsible for changing the mailing addresses of vendors in the company's computer. As the company was serious about separation of duties, they separated the task of setting up and changing vendors' information from the employee who makes the payments and sets up accounts payables. Sue was provided a personal password that she was never to share with anyone else. Recently Sue was transferred to a new role as a result of problems with her direct supervisor. In Sue's new role her duties were the issuance of cheques to vendors.

Her former supervisor forgot to cancel her access and old password related to updating the vendor record as the former supervisor was glad to see her leave his section.

At some point Sue realized this oversight and she requested a cheque for an existing vendor, then signed on to the system with her old password and changed the address of that vendor. The cheque was then sent to the new address that she had personal access to, where she picked up and deposited the cheque. The next day Sue would used her old password to re-enter the system and replace the proper address so that there would be no record of where the cheque had been sent.

This scheme went on for 8 months and resulted in a loss of over $250,000 to the company.

Assignment Tasks:

1. For the scenario provided answer the following four questions
   • How could this fraud have been detected?
   • How could you prove this fraud had occurred and Sue was responsible?
   • How could this fraud have been prevented?

Marking Rubric

3 points

Clearly and accurately identifies all relevant factors that may lead to the fraud being detected. The type of information selected reflects creative insight and a careful analysis of the situation.

2 points

Provides careful and reasoned proof that supports what may have happened with each step clearly following a clearly articulated procedure , with the result being well defended.

3 points

Clearly and accurately identifies sufficient relevant prevention procedures that may have prevented the fraud. The type of information selected reflects creative insight and a careful analysis of the situation.

2 points

Excellent presentation, perfect sentence structure, no spelling mistakes, materials exceptionally organized and an exceptional sense of direction. No issues with APA using citations or references.