Scenario:

You are a Junior Accountant for Company XYZ. On a day-to-day basis, you:

• Prepare bank reconciliations and bank entries
• Perform month-end adjusting journal entries
• Review account balances
• Assist in the year-end audit process
• Generate ad hoc reports and analysis as requested
• Act as a backup for vacation coverage. This includes:
  • assisting the Accounts Payable team when required for miscellaneous tasks such as adding/removing new vendors to the system
  • assisting the HR & Payroll team when required for miscellaneous tasks such as photocopying/scanning, filing and adding new employee information to the system
  • assisting the Accounts Receivable team with the cash deposits at the bank

Instructions: For a moment, think like a Fraudster. With relation to the responsibilities noted above, detail how you could commit fraud. Specifically,

1. Provide an example of corruption

2. Provide an example of asset misappropriation

3. Provide an example of financial statement fraud