Fraud Audit Issues
Using the knowledge gained with the ACL tutorials, complete FIVE ACL tests to uncover the following
fraud, putting your screenshots and a brief (1–3 lines) explanation of each test and the results below the
screenshots:
Because of James Walker’s familiarity with the purchases system, he was asked by top management to
temporarily oversee the initial running of the new system to ensure a smooth transition from the old
legacy system. After several months, Walker was offered a promotion to Warehouse Manager and
given permanent responsibility for product purchasing.
This act by management placed Walker in a situation that allowed him to exploit inherent weaknesses in
the system and perpetrate a fraud. As part of the fraud, Walker established himself as a fictitious
vendor, number 11663. The fraud methodology involved Walker using his uncontrolled access to the
system to falsify purchase orders to his phony company and then using voided receiving report numbers
to simulate inventory receipts. These two events trigger the system to create a voucher payable record.
By submitting vendor invoices from his fictitious company, Walker effectively tricks the system into
writing him a check.
Hints for the five tests:
1. Because Walker wants the checks to come to him personally, what address do you think the
company he makes up would have?
2. How many of the vendor purchases are attributable to Walker’s fictitious company? (use
Classify to get cost and percentage)
3. Do the purchase order quantities for the vendor match the receiving reports? (Filter Purchase
Order for Vendor 11663, Total on Quantity)
How much was paid for the purchase orders if the quantities were different? (Join Purchase
Order to Chk Register on Vendor Number and filter for Vendor 11663. Then total the
Ext_Cost)
4. How much was paid to the fictitious vendor? (Chk_Amnt from Chk_Register for vendor
11663)
Does this match the Vouchers? (This is what was paid for purchase orders from Q3)
5. How much was received from the fictitious vendor?
