Accounting Tools

APRIL 14, 2024

What is a Ghost Employee? A ghost employee is a person who is on an employer's payroll , but who does not actually work for the company. Someone in the payroll department creates and maintains a ghost employee in the payroll system, and then intercepts and cashes the paychecks intended for this person.

Payroll 75

Payroll Auditing 75

Accounting Tools

NOVEMBER 26, 2023

There are several ways in which employees can commit payroll fraud, as noted below. Advance Retention Fraud The most passive type of fraud is when an employee requests an advance on his pay and then never pays it back. Periodic auditing of the payroll records is needed to spot ghost employees.

Payroll 74

Payroll Deposits Auditing Accounting 74

Accounting Tools

JANUARY 30, 2024

What is a Ghost Card? A ghost card is a credit card number that is specific to each company department, for use by anyone in that department. A ghost card can even be issued to selected suppliers. Related AccountingTools Course Payables Management Related Article How to Record a Credit Card Payment

Data Entry 40

Data Entry Accounts Payable Accounts Payable Accounting 40

Accounting Tools

OCTOBER 21, 2023

Personal Purchases An employee can divert funds to buy goods or services on his own behalf. The person must hold a sufficiently senior position to be able to browbeat other employees into participating in this diversion of assets. Weak controls over the payment of employees makes this type of fraud more likely.

Financial Statements 75

Financial Statements Expense Reports Tax Payroll 75

Accounting Tools

OCTOBER 23, 2023

Buddy punching occurs when one employee asks another person to clock in or out for him. For example, an employee has slept late, is on his way to work, and calls ahead to have someone clock him in so that the shift supervisor does not find out. Related Articles Ghost Employee White Collar Crime

Payroll 40

Payroll 40

Accounting Tools

NOVEMBER 4, 2023

Consider the following alternatives: An employee has convinced a supplier to bill the company in several installments for an acquired asset, where each invoice is somewhat below the company’s capitalization limit. Related Articles Ghost Asset There are several ways in which a zombie asset can appear.

Billing 40

Billing Auditing Invoicing Tax 40

Accounting Tools

NOVEMBER 2, 2023

Of the preceding items, the most common issue for a forensic auditor is asset misappropriation, such as the outright theft of cash, the use of company credit cards for personal use, setting up ghost employees in the payroll system, or the theft of fixed assets.

Auditing 40

Auditing Financial Statements Financial Records Payroll 40