Reference no: EM132744627

Problem 1: Identify the possible types of fraud in the below case.

The administrator of the school board in a small city had ultimate authority for all items payable from the board's annual budget. As an administrator, he travelled frequently to education conventions and meetings of administrators in the state capitol and across the country. Although he was an excellent CPA and the day-to-day affairs of the board ran smoothly, his prickly personality did not endear him to the board and made his attempts to get approval for his proposals difficult. Frustrated and increasingly embittered, he saw a way to get back at the board by using his signing authority to approve personal expenditures and write checks to himself. He submitted mileage expenses while using a car leased for him by the board, and he used the board credit card to out gas in his own car. Other bills submitted and approved by himself were for meals and entertainment on weekends and repairs to his car. After his secretary blew the whistle on him, forensic investigators found that invoices for many transactions did not exist. The administrator was dismissed from his job, but no charges were ever laid.