Question

Regina recently landed her dream job at a local clothes outlet. Within a few weeks of working in her new employment, however, Regina began to engage in fraud. Regina committed the fraud by doing the following:

When people returned merchandise, Regina would ring up an amount that was greater than the value of the item that was being returned. Regina would then pocket the extra cash and give the customer the amount due. Regina found this method of fraud very effective because people were, in reality, returning something and inventory and register totals wouldn't be out of balance at the end of the day.

Required:
1. What type of fraud is Regina committing?
2. How could her employer detect this kind of fraud?

Answer 1

Regina is committing refund fraud by inflating refund amounts. Her employer could detect this fraud through reviewing surveillance footage, conducting regular inventory checks, and implementing internal controls.

Step-by-step explanation:

1. The type of fraud that Regina is committing is called refund fraud. This occurs when someone intentionally manipulates the return process to obtain money that they are not entitled to. In Regina's case, she is inflating the refund amount and keeping the extra cash.

2. Regina's employer could detect this kind of fraud through various methods:

Reviewing surveillance footage: The employer could review the transactions at the cash register and compare them to the merchandise being returned. If they notice that Regina consistently enters higher refund amounts, it could raise suspicions.

Conducting regular inventory checks: The employer could compare the amount of returned merchandise with the refund amounts entered into the system. If there are discrepancies between the two, it could indicate potential refund fraud.

Implementing internal controls: The employer could establish policies and procedures for handling refunds, such as requiring multiple employees to be involved in the process, to minimize the risk of fraud.

Answer 2

Fraudulent disbursements,

card statement review

Step-by-step explanation:

Fraudulent disbursements are very common and occur when an employee misappropriates company funds by making inappropriate payments, fraudulent. They are also called on-book frauds and can only be traced by putting systems that keep these practices in check. The most likely way to have caught the employee in the above case was to review the card statement and review purchases made and to what amount the refund from the company's card was made