In One of the Case Studies in the Textbook, Albert

question 10

Multiple Choice

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. How was the fraud caught?

• A) The auditors found a discrepancy in the invoices that were submitted.
• B) The new chief of internal audit found it by accident.
• C) A vendor received a check by mistake and called the accounts payable department.
• D) The external audit found it in an audit sample of canceled checks.