Abby Watkins works in the accounts payable department for SVX Company. Recently,

Q: Abby Watkins works in the accounts payable department for SVX Company. Recently,

non accomplice vendor scheme Savvy and dishonest employees may easily exploit internal weaknesses by running a “non-accomplice vendor scheme.” The vendor is not a part of thescheme, but the unscrupulous employee will mastermind a vendor scheme either as a pay-and-return scheme or by intentionally overbilling thevendor.

ID: 2553342 • Letter: A

Question

Abby Watkins works in the accounts payable department for SVX Company. Recently, she set up a payment to Pacific Industries for invoice number 7001a, which is unlike any invoice number she has seen from Pacific in the past. The voucher contains a purchase order that backs up the invoice, but it looks like a photocopy. Additionally, the accounting system shows that invoice number 7001 from Pacific was for a slightly different amount and has already been paid. Pacific Industries is an established vendor with SVX, but the payment address has recently been changed to a P.O. Box in the vendor file. What type of fraud does this situation most likely indicate and why?

Explanation / Answer

non accomplice vendor scheme

Savvy and dishonest employees may easily exploit internal weaknesses by running a “non-accomplice vendor scheme.” The vendor is not a part of thescheme, but the unscrupulous employee will mastermind a vendor scheme either as a pay-and-return scheme or by intentionally overbilling thevendor.

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Abby Watkins works in the accounts payable department for SVX Company. Recently,

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