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The Most Common Fraud in the Acquisition and Payment Cycle

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The most common fraud in the acquisition and payment cycle is for the perpetrator to issue payments to fictitious vendors and deposit the cash in fictitious accounts. What procedures could the company take to prevent this type of fraud?


Definitions:

State Mental Hospital

A public institution providing inpatient psychiatric care and treatment for individuals with mental health disorders.

Community Treatment

An approach to mental health treatment that provides services to individuals within their local community setting as opposed to institutional or hospital settings.

Ongoing Evaluation

The continuous assessment and examination of a process, project, or system to measure progress or identify improvements.

Physical Assault

An act that intentionally inflicts bodily harm upon another person.

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