In one of the case studies in the textbook, Albert Miano, the facilities supervisor for a popular magazine, submitted phony invoices. When Miano received the checks for the phony invoices, he forged the contractor's signature. He then endorsed the check in his own name. What controls weaknesses did the company have that facilitated Miano's scheme?
A) Employees in the accounts payable department did not follow departmental procedures.
B) Accounts payable never checked signatures on the invoices against the authorized signatures on file.
C) Miano was allowed to pick up the approved invoices from the administrative vice-president's office and deliver them to the accounts payable department.
D) All of the above

Question

Quizplus · Accepted Answer

The three controls weaknesses listed in options A, B, and C all contributed to the success of Miano's scheme. The lack of adherence to departmental procedures in the accounts payable department allowed Miano to submit phony invoices without detection. The failure of accounts payable to check signatures on the invoices against authorized signatures allowed Miano to forge the contractor's signature. Finally, the fact that Miano was allowed to pick up and deliver the approved invoices provided him with the opportunity to intercept the payments and endorse them in his own name.

In One of the Case Studies in the Textbook, Albert