The three cases presented all involve misappropriation of assets and general information technology (IT) control issues. Discussion and analysis of the case components are presented below to provide additional insight for instructors wishing to use the cases as a pedagogical tool. In addition, more specific possible solutions to the cases are included below. The suggested solutions should not be viewed as the only possible solutions. Students may suggest solutions equally as good as those presented.
In the Gamma Construction case, the company's controller has the ability to place a fictitious purchase order and improperly collect payment for the order. This case involves a billing scheme, which is defined as any scheme in which a person causes his/her employer to issue a payment by submitting (1) invoices for fictitious goods or services, (2) inflated invoices, or (3) invoices for personal purchases. Billing schemes comprise approximately 26 percent of fraud due to...
