Overview
Scenario
You are an internal auditor at Blue Island Vacation Rentals, a small travel organization. One of your recent reviews has uncovered a potential case of fraud. While reviewing payroll reports for reasonableness and accuracy, you discovered that the payroll manager can add employees to the payroll system, change personnel files, and approve payroll disbursements. Although there is no record of recent new hires, inconsistencies have been noted showing three new employees being added to payroll this past month, and they all share the same address. Your supervisor has asked you to create a fraud assessment chart for the CEO, identifying the fraud scheme and risks in this organization.
The skills practiced in this assignment will help to support you in your project.
Directions
Using the template in the What to Submit section, create a flowchart for the CEO that identifies the fraud risks in the organization.
Explain the type of fraud that happened in the organization.
Describe the fraud risks that allowed the fraud to happen.
Summarize action steps that can be implemented to prevent this type of fraud in the future.
What to Submit
Submit your assignment with all the required sections by completing the Module Five Assignment Template. Sources should be cited according to APA style.