What are examples of fraud in the workplace?

ANSWER

Examples of fraud in the workplace can be:

Unrecorded vacation and sick leave
Stealing cash or equivalent (inventory/equipment/supplies)
Payroll (falsified overtime, ghost employee, etc.)
Use of corporate credit cards for unauthorized purchases
Fabricated receipts
Fictitious travel vouchers or purchase orders (ghost vendors)
Unauthorized personnel signing approval documents (forgery)
Falsified transaction details/false mileage
University resources used for personal gain
Entertainment without legitimate business purpose

Poor internal controls often contribute to the occurrence of fraudulent behavior. Examples include:

Lack of separation of duties
No ledger reviews or reconciliation of charges
Lack of management oversite

Examples of punitive actions that can occur if found guilty of fraudulent behavior:

Immediate investigatory leave (if investigation results in a guilty determination, termination is the next step)
Criminal charges brought for fraud, grand theft by embezzlement
Prison
Restitution

For further assistance with finding solutions that strengthen your internal controls and help you manage risk, consult with the Internal Audit Services unit.

WAYS TO PREVENT LIABILITY

Consult with the Internal Audit and Internal Controls unit to:

Give you impartial expert advice
Benchmark leading practices with peers
Assist with specific issues
Provide training on internal controls
Provide confidential sounding board for ideas or concerns
Help identify risks
Help control weaknesses
Assist in developing key controls

Common Whistleblower and Fraud Questions

Definition

Fraud in the workplace may be defined as: 'The use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets.'

Workplace fraud schemes can be as simple as pilferage of company supplies or as complex as sophisticated financial statement frauds.