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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?

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sandlee09

Answer:

Falsified hours and salary scheme.

Explanation:

Based on the scenario being described within the question it can be said that the type of fraud that these findings most likely indicate would be Falsified hours and salary scheme. This is when employees find a way to add more hours to their time sheets that they have not worked in order to increase the amount of money that they get at the end of the month.

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