THIS AN AUDIT QUESTION

Read the case carefully foridentify as many scams as you can find. Think about ithow the perpetrator could steal as much as $ 2.2 million in a short period of time withoutfound. What is the nature of the expenses incurred by the perpetrator? Relate it to theorythe fraud triangle.

Women stole $2.2 million and spent, spent, spent By Charmaine Chan She spent $33,580 on family holidays in different parts of Malaysia, and other A WOMAN who earned less than $1,000 countries. She also bought 30 lots of NatSteel a month stole more than $2.2 million from shares worth $136,600 in the name of her her employer over a two-year period and husband, Mr. Yap Su Ming, and also spent spent, spent, spent. $30,000 to set up a trading company in his Sales co-ordinator Jenny Lee Meow Sim, 33, bought shares for her husband, a name. Apart from the $68,000 car Lee bought 1.5 litre Nissan Sunny for herself, a house herself, she spent over $42,000 on a terrace for a sister-in-law, and took her family on house in Pahang for a sister-in-law, holidays to Malaysia, Taiwan, New $37,000 to pay for her stepfather's medical Zealand, Bali and Phuket. bills, $23,000 for his funeral, $6,500 on a In all, the stole $2,237,250 from tombstone for her husband's relatives, and NatSteel Chemicals Lid. She claimed that a $9,111 piano for her daughter. she spent $1.7 million on 4-D lottery She also lent friends $12,300, invested tickets, because she was hoping to win big $50,000 in a fixed deposit; and gave and put back the money she stole before $8,000 to her mother and stepsisters. she was caught. Money was also used for household Yesterday, Lee was jailed a total of four expenses. years for three criminal breach of trust When she was arrested on Feb 10, charges while a fourth similar charge was police could recover the money and taken into consideration. valuables worth only $468,279.70. She As an assistant in her company's claimed that the rest - $1,768,970.30 - Commercial Department, she took went to 4-D betting. $1,065,000 over a year from Feb 1, 1991, In mitigation, her lawyer P. Sivakumar, and another $1,172,250 from Feb 1, 1992, said that Lee knew she had to return the to Feb 5 this year. Deputy Public Prosecutor Andy Wong money she had taken and had hoped to strike it rich in the 4-D lottery. But the said that Lee dipped into the funds when sums she won were not enough. money was needed from the company safe. She would take more cash than was He said that Lee came from a poor needed by a paying officer, hand over the family and had studied up to Secondary 4. She committed her first misappropriation required amount and pocket the rest. Then she would record the actual amount in March 1990 when she was an accounts assistant in another company. she had taken in the safe's Cash Balance Record so that the available cash amounts He added that Lee did not want her tallied when surprise checks were made. husband, whose business was struggling. To avoid detection by external auditors, and her three children to suffer from the she altered entries in the General Ledger vicious cycle of poverty that had affected * her life. and Trial Balance Report by withholding pay orders and also generating false - The Sunday Times, March 21, 1993 purchase reports and debit notes. (Singapore)