Derek the SAP Expert

Derek the SAP Expert

Name:

Institution:

Derek the SAP Expert

Part 1

            The firm in which Derek had worked for was looking for effective means of getting accountability by selling Derek as an SAP expert even though he had never seen the software before. This was a gamble of acquiring the remuneration package while minimizing the costs in the part of the company with the project since they had had two managers before in an expensive run down time. The billing of $200 an hour by Derek’s firm was a source of fraud since it was only less than what the previous managers were paid (Jones, 2006).

Part 2

            Mike, the well-dressed purchasing manager, was unpredictable but quite productive in his core roles. This is demonstrated by his choice to forgo the annual vacations instead opting to put more hours into his work. This was an avenue to fraud since he could not explain the origin of his expensive clothes and top of the range vehicle that he drove. He was a purchasing manager in the company, but his salary could not sustain the lifestyle choice he depicted (Albrecht and Albrecht, 2008). Probably, his serious relationships with the vendors helped facilitate the luxuries that he could afford, despite the 20 years of service to the company.

Part 3

            The sales practice in the Internal Sales and Shipping Department was quite fraudulent evidenced by the habitual false shipping orders to customers. Kathy explained that the department would ship orders at different times even when the customers had not placed any orders. This was means of ripping off the customers, who had to pay for the orders even if some of them would be returned. Moon (2007) agrees that the justification of making numbers at the quarter’s end in terms of returns was wrong by all standards.

References:

Albrecht, W. S., & Albrecht, C. O. (2008). Fraud examination. Mason, OH: Thomson South-Western.

Jones, M. (2006). Accounting. Chichester, England: Wiley.

Moon, C. (2007). Business ethics. London: Economist.