Question

In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices. When Miano received the checks for the phony invoices, he forged the contractor’s signature. He then endorsed the check in his own name. What controls weaknesses did the company have that facilitated Miano’s scheme?

A. Employees in the accounts payable department did not follow departmental procedures.
B. Accounts payable never checked signatures on the invoices against the authorized signatures on file.
C. Miano was allowed to pick up the approved invoices from the administrative vice-president’s office and deliver them to the accounts payable department.
D. All of the above

Answer 1

Option "D" is the most appropriate answer to the following situation.

All of the above.

Explanation:

Departmental policies did not apply to staff in the accounts payable department.

• The Advertising employee demonstrates organizational error. It is the duty of the cash payable department to make this effective.

Accounts payable have never verified billing signatures against the file documents authorized.

• The shaky legal status of an invoice was the very reason for how sellers require customer signatures, or some form of binding acknowledgment, before giving out goods.

Miano was allowed to receive the authorized receipts from the department of the Executive Vice-President and send them to the division of accounts payable.