In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices. When Miano received the checks for the phony invoices, he forged the contractor's signature. He then endorsed the check in his own name. How was the fraud caught?

a. The auditors found a discrepancy in the invoices that were submitted.

b. The new chief of internal audit found it by accident.

c. A vendor received a check by mistake and called the accounts payable department.

d. The external audit found it in an audit sample of cancelled checks.

Question

Business

Bailey Calhoun

29 July, 23:25

In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices. When Miano received the checks for the phony invoices, he forged the contractor's signature. He then endorsed the check in his own name. How was the fraud caught?

a. The auditors found a discrepancy in the invoices that were submitted.

b. The new chief of internal audit found it by accident.

c. A vendor received a check by mistake and called the accounts payable department.

d. The external audit found it in an audit sample of cancelled checks.

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Answers (1)

Know the Answer?

Kade Lucas · Answer 1

Answer: Option B

Explanation:

In this case Alber Miano had created replica of the invoices and has forged the contractor's signature. The hours of the trade contractors work was changed slightly. Due to the failure of the internal controls Miano was able to indulge in fraudulent activities in a bolder manner.

Through an internal audit Miano's activities were found out by the auditor and the vice president. Then Miano accepted that he was guilty and only showed less than half the amount spent on tangible assets from the accumulated fraudulent activities for four years.