Jack Franks Was the Accounts Payable Manager of ProLight Property

question 17

Essay

Jack Franks was the accounts payable manager of ProLight Property Management Ltd. Jack started with the company as a bookkeeper and worked up to his current management position. He was promoted due to his dedication to the company and his reliability- he often worked evenings and weekends, rarely called in sick and he never took holidays. Despite making a good wage, Jack enjoyed living large, and the majority of his paycheque went to pay for his luxury car and designer clothes. As Jack was living paycheque to paycheque he was disappointed he did not have a "nest egg" set aside for retirement or emergency purposes. ProLight Property Management had a history of profitability. To reward its employees, the company had established a bonus scheme for meeting profit targets. It was a shock to all employewhen at the end of 2015, the company announced it had had the worst year in the company's history. The losswere significant and the company planned significant lay-offs in an attempt to turn this situation around. As a result, the accounting department was reduced by 35%, and the remaining staff was asked to do more. Jack found not only was he managing an unhappy accounts payable group, he was also now signing cheques, processing payables, and reconciling the bank account. This meant Jack was required to work even more without any pay increase or bonus in sight. For the first time in his career at ProLight, Jack was unhappy. While he was fearful further lay-offs may be coming, he also felt unappreciated and after all of his hard work, he was unhappy he was being asked to do more. Required: Discuss the incentives, opportunitiand rationalizations to commit fraud in this case.

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Precision

The degree to which repeated measurements under unchanged conditions show the same results.

Precise

Referring to the closeness of two or more measurements to each other, showing little variance when repeated.