The following fraudulent acts/problems may occur in a not-for-profit organization. As an

auditor, how would you detect these? And what recommendations would you give to the board and management of Not for Profit Organizations?

a. Fictitious vendor schemes

b. Kickbacks from unscrupulous vendors

c. Pay-and-return schemes

d. Ordering personal merchandise that is inappropriately charged to the organization.

e. Skimming

f. Non-existent monitoring control due to high employee turnover and NPOs heavy reliant on volunteers and other community members.

g. Misappropriation of funds

h. Fictitious Recipient

i. Juggling of Funds

j. Single source of donations