Forensic Accounting Case Study Samples

Fraud refers to a deceptive act committed by people with an aim of producing a personal or financial gain from such an act. The situation at hand presents various elements of frauds committed by employees of the company. First, the situation presents an element of embezzlement fraud that occurs within the company. Embezzlement is the use of unethical methods to misuse the funds of a company. The expense reimbursement policy of the company clearly states that, the responsibility of expenses such as lunch is the responsibility of an employee except for lunches with clients and potential recruiters. However, employee defile this policy by taking lunches at the expense of the company on their personal grounds and cheating that they were in a business transaction of the company (Taylor 324).
In addition, forgery is another fraud that may arise due to the provisions of this situation. Since employees take lunch when they are out for their personal businesses, the receipting of the lunches may bring in the element of fraud. For the approval of the lunch receipts, they should have a signature and a stamp from the hotel that provided the services to the employee. As a result, employees may be forced to forge the signatures and the stamping of the hotel in order to justify themselves. Forging amounts to unethical misconduct and is one among many other types of frauds.
Finally, the situation also brings about conspiracy within the lunch transaction between the employees and the hotel offering the service. Since the policy supports lunches for employees when performing business transactions with clients, employees may conspire with the hotel management in order to receive receipt for the transaction that involves business clients when actually no business transaction took place. Such conspiracy is against the law and amounts to fraud.

Work Cited

Taylor, John. Forensic Accounting. Harlow: Financial Times/ Prentice Hall, 2011. Print.