Orange Publishing hired Moe McDonnell, CFE, to investigate some large variances in the company's labor costs. While looking through the payroll records for the shipping department, McDonnell noticed several employees who claimed extensive overtime during pay periods in which the company's incoming and outgoing shipments were minimal. McDonnell pulled the timesheets for these pay periods and noticed that those belonging to the suspect employees had signatures that didn't match the signatures on the other timesheets. What type of fraud might these findings indicate?

Question

Quizplus · Accepted Answer

The findings indicate that the employees may have falsified their timesheets by claiming overtime for hours they did not work. The mismatched signatures suggest that someone else may have filled out and signed the timesheets on behalf of the employees. This is a type of fraud known as the falsified hours and salary scheme.

Orange Publishing Hired Moe McDonnell, CFE, to Investigate Some Large