risk—manipulating-business-transactions

Recording fictitious business transactions for personal gains

Employees may intentionally record fictitious transactions, where such action may provide them with personal gain. E.g.

A trader may record fictitious trades in the trading system to hide past trading losses.
An employee with access to HR system may record details of employees, who do not work the firm [ghost employees]. All salaries and benefits paid to such ghost employees may be paid in one or more bank accounts which are controlled by the employee who recorded the ghost employees.
An employee may submit fictitious expenses on their personal expense claims
An employee with access to procurement system may record details of fictitious supplier within the system and add fictitious invoice entries. All payments paid for such invoices may be paid in one or more bank accounts which are controlled by the employee who recorded the fictitious suppliers and invoices.
An employee raises and approves a false invoice for a vendor and shares the paid amount with the vendor.

Misuse of authority to embezzle firm's assets for personal gains

Employees may misuse their authority to embezzle firm's assets for personal gains E.g. :-

Manipulating Business Transactions