Embezzlement in the Workplace Assignment Example | Topics and Well Written Essays - 750 words

Embezzlement in the Workplace - Assignment Example The accounting method that the manager used was a complex deception web where he set up fake companies, made fake invoices, and delivered fake expense reports for payments supposedly made to certain companies on Quest’s behalf. This resulted in the impact on the company’s balance sheets as erroneous calculations had been made due to the fraud. This fraud led to several accounts being impacted that include account receivable as well as sales revenues. The main reason behind this impact is the fact that the erroneous calculations affected both the calculations that had been made during the fraud and that requires being re-calculated. This affected the company’s balance sheet. The other fraud case in the recent times involves Block Communications Inc. that was deceived by a thief who was hired by the company as a thief prevention specialist. The accounting method used in this fraud was computer exploits (Bilski, 2009). In this instance, instead of the ‘specialist’ protecting the interest of the entire company he wrote himself checks and then destroyed the cancelled checks, which were returned to the company. The culprit made false entries to the company’s books affecting accounts such as account receivable and sales revenues. This is mostly because the company incurred losses emanating from the fraudulent sales. This cost the company funds amounting to $1.1 million. In addition, the culprit also made false entries in the organization’s books in order to cover the tracks. This fraud affected the company’s cash flow statement. Another case of fraud incorporated missing company assets. In this particular case, a former employee in the Directory Plus company stashed away at least 100,000 directories belonging to the company assets over a period of approximately four years. The directories were hidden in there different storage units that were found to be under her name. The employee also stashed away several phone books so as to cover the tracks of the fraud activity. This amounted to over $500,000 (Bilski, 2009).