// Fraud schemes
Payroll review
Ghost employees, falsified hours and pay rates, and commission schemes.
S09
Payroll — ghost employee
The payroll pays someone who does not work for the organization: a fictitious person, a former employee kept on the payroll after leaving, or a relative or associate who does…
S10Payroll — falsified hours and pay rates
An employee overstates hours worked or raises a pay rate to increase pay for themselves or an accomplice. Variants include unearned overtime, overtime for exempt staff, unauthorized rate increases, and…
S11Payroll — commission schemes
A salesperson inflates commission by overstating sales, recording sales that are later reversed, or raising the commission rate applied. Commissions are paid on sales that are returned, canceled, or never…