Assignment 6-2: Fraud Case Report – Plush Pet Daycare
Fraud Case ReportPlush Pet DaycareExamination of Potential Payroll and Billing SchemeDate: November 5, 2014Table of Contents:Background…………………………………………………………………………………..3Executive Summary………………………………………………………………………….4Scope…………………………………………………………………………………………5Approach……………………………………………………………………………………..6-7Findings………………………………………………………………………………………8-9Exhibit 1 – Payroll Journal “A” (August 2014)……………………………………………..10-12Exhibit 2 – Payroll Journal “B” (August 2014)……………………………………………..13-14Exhibit 3 – Direct Deposit/Payment Report “A” (August 2014)……………………………15-17
Exhibit 4 – Direct Deposit/Payment Report “B” (August 2014)…………………….……18-19Exhibit 5 – Direct Deposit/Payment Report “C” (August 2014)……………………………20-22Exhibit 6 – Cancelled Checks………………………………………………………………..23-31Exhibit 7 – Master Employee Payroll List and Payroll Register…………………………….32Exhibit 8 – Payroll Address List……………………………………………………………..33Exhibit 9 – Customer Complaints……………………………………………………………34-35Exhibit 10 – Email Communications and Text Messages……………………………………36Exhibit 11 – Memorandum of Interview: Patricia Samuels, President……………………….37Exhibit 12 – Memorandum of Interview: Suzy Montgomery, location manager…………….38Exhibit 13 – Memorandum of Interview: Judy Murphy, Corporate Controller………………39Exhibit 14 – Memorandum of Interview: Danny Jones, Operations Manager…………..…..40Summary………………………………………………………………………….….………41Impact to Plush Pet Daycare……………………………………………………….…….…..42Recommendations……………………………………………………………….….………..43BackgroundOn September 15, 2014, the president of Plush Pet Daycare, Patricia Samuels, made an unannounced visit to store location #0036, located on Montgomery Road in Cincinnati, Ohio. The visit was prompted by the recent increased number of customer complaints the company received through its website.