In One of the Case Studies in the Textbook, Albert

question 9

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. 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

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states to facilitate easier trade and commerce.

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty, whether by omission or commission.

Implied Warranty

A legal assumption in commerce that ensures the goods sold meet certain quality and usability standards, even if not expressly stated in a contract.

Particular Purpose

Refers to a specific reason or intention for which something is used, often implicating that the product or service is suitable for that intended use.