Reference no: EM132608084

Mr. Big of The Big Big Company sees that sales will miss the projected sales volume for the year that the company made public to wall street gurus. Fearing that the stock will go down in price if the company issues statements that miss the projected volume Mr. Big asks his sales department (not the accounting department) to help make the "numbers" before the close of the year. The sales department tells Mr. Big that because of Covid their customers do not need to order more product at this time. Mr. Big tells them to get "creative" and "make it happen". What does the sales department do to generate the sales that they need.

Question 1: Describe one way where the sales department gets the cooperation from customers to generate sales invoices. How, or why, is this a management fraud?

Question 2: Describe one way where the sales invoices are generated without the cooperation from customers and the customers don't even know. How, or why, is this a management fraud?