Fraud

Bonne Consulting Group
Helen Weeks has worked for Bonne Consulting Group (BCG) as the executive secretary in the administrative
department for nearly 10 years. Her apparent integrity and dedication to her work has quickly earned her a
reputation as an outstanding employee and has resulted in increased responsibilities. Her present
responsibilities include making arrangements for outside feasibility studies, maintaining client files, working with
outside marketing consultants, initiating the payment process, and notifying the accounting department of all
openings or closings of vendor accounts.
During Helen’s first five years of employment, BCG subcontracted all of its feasibility and marketing studies
through Jackson & Co. This relationship was subsequently terminated because Jackson & Co. merged with a
larger, more expensive consulting group. At the time of termination, Helen and her supervisor were forced to
select a new firm to conduct BCG’s market research. However, Helen never informed the accounting
department that the Jackson & Co. account had been closed.
Since her supervisor allowed Helen to sign the payment voucher for services rendered, Helen was able to
continue to process checks made payable to Jackson’s account. Because her supervisor completely trusted
her, he allowed her to sign for all voucher payments less than $10,000. The accounting department continued
to process the payments, and Helen would take responsibility for distributing the payments. Helen opened a
bank account in a nearby city under the name of Jackson Co., where she would make the deposit. She paid all
of her personal expenses out of this account.
Assume that you have recently been hired by Bonne Consulting Group to help detect and prevent fraud.

  1. What type of fraud(s) could be or is/are being committed (Be Specific)?
  2. What procedures could have been implemented to prevent this fraud?
  3. What procedures could have been used to detect this fraud?

Sample Solution

ACED ESSAYS