Fraud memo

7 Oct No Comments

Memo

To: Mr. James A.

From: Team 1

Cc: Jenea K

Date: Sept 30, 2017

Re: FRAUD INVESTIGATION, CROOKED

Thank you for the given opportunity to present our details concerning our latest fraud investigation. We would like to provide our details that we have collected until now because we are still on our final stages. We also want to provide recommendations regarding our final investigation. This memo has the payroll analysis and the pivot tables that are in the questions that we will present to CRookED. Our concern is on the payroll of the ghost employees.

Techniques used in Data analysis

In order to analyze he expense data of the payroll, Team A has to utilize a number of techniques. There was provision of the summary tables. Team A found the variances by comparing the information. Learning team A concluded by coming up with detail and adjustments tab.

The table of pivot collapses the summary that has been detailed and adjustment data by the use of detail entry codes which are of importance when it comes to the classification of salary. The data vertical and horizontal analysis is provided by Learning team A.

Observation from the data

After the creation of the pivot table, we concluded that the tabs containing the summary and the details of the information are generated from the similar data, however, a number of inconsistencies needed further review. Example is, the summary of the worksheet gives a reflection of a detail entry code of 6740 for salary pipeline. The worksheet gives a reflection of the same code but has with it a different description salary- Warehouse code.

The worksheet in its summary shows that the 6720 code Commissions of the salary was added in the year 2007. The total expense was $582825 for that year’s new classification. There was an increase of the sales salary in the year 2007, from 6735 to $1663807. An average of three years from 2004-2006 was $929841. In the history data, it is a representation of increase of 79 percent. The 2007 two changes leads to an increase of $1316790 to sales and the salary expense of the commission.

It is notable that salaries of the pipeline decreased in 2007. The salaries associated with the expenses for the pipeline for those three years were $840985, and was later listed as $189231. This shows that there was occurrence of less construction, but there was increase of the sales salary and commission salary. There is a reflection of a decrease of 200000 by the 6725 code salary management. In addition to this, we were not able to get any additional information that regards to why the payroll has a varying expense.

There is a reduction in $6447.54 towards the end of calendar year for the management of salary, this was in 2004. In 2005, there was a reduction of $10545.62 under the sales of salary at the end of the calendar year. In 2006, shows a decrease at the beginning of the calendar year for $172605.36 under the salary management, office of the salary and the salary warehouse. In 2007, there was a reduction in January, June, July and October for the commission of the salary. In 2007, there are a lot of entry reflection that has zero counts.

In conclusion, our final fraud investigation details have been gathered through payroll expenses analysis. Additional resource is needed for the further investigation of the alleged fraud that may have arisen. Please contact us if you may have some questions regarding the above analysis or if in need of any additional information regarding this memo.

Sincerely,

Team 1.




Click following link to download this document

Fraud memo.docx