Today’s auditing moment: Fictitious Vendor Embezzlement

The proof is so well hidden in the paper trail investigators need to know where to look.

First some mood music to set the theme:

I’ve Got Your Number ~ Journal of Accountancy

Frank Benford made a simple observation while working as a physicist at the GE Research Laboratories in Schenectady, New York, in the 1920s. He noticed that the first few pages of his logarithm tables books were more worn than the last few and from this he surmised that he was consulting the first pages—which gave the logs of numbers with low digits—more often. The first digit of a number is leftmost—for example, the first digit of 45,002 is 4. (Zero cannot be a first digit.) Benford extrapolated that he was looking up the logs of numbers with low first digits more frequently because there were more numbers with low first digits in the world.

OK, I know those of you that are not mathematically inclined are scratching their heads wondering what the heck I am talking about so here goes.  This morning Dixygirl left a comment on the Mississippi Department of Marine Resources post quoted above which described “Fictitious Vendor Embezzlement” aka “Ghost Vendors”.  Chubb, the world’s leading good faith insurer (as opposed to the bad faith variety) has put out a resource on this topic for their business insureds that is well worth quoting that described the scheme: Continue reading “Today’s auditing moment: Fictitious Vendor Embezzlement”

Is TeeVee News responsible for the dumbing down of America? Slabbed calls BS on Channel 4 and their bogus SNAP performance audit reporting

I watched this morning’s Toolman Interview segment on the WWL morning news with Chick Foret and Sally Ann and openly wondered if TeeVee News is the media format that is most responsible for the dumbing down of America. Yes, Channel 4 is famous for putting spectacularly hot women on the air in a tasteful, non-Faux News like manner but are the viewers actually getting any useful information outside the Traffic and Weather segments? After watching this morning’s 5 minute plus segment on the recent Louisiana Legislative Auditor Performance Audit of the SNAP Program, formerly known as Food Stamps the answer is no. To get a flavor of the inaccurate, sensational journalism being trumpeted by Eric Paulsen and Chick Foret let’s visit with Tania Dall’s report on same for WWL TeeVee.

Eyewitness News has learned more than $1 million worth of food stamps intended for people in need wound up in the hands of convicted criminals.

That is just one type of fraud and abuse that was discovered in Louisiana’s Supplemental Nutrition Assistance Program known as SNAP.

Really Tania? Inmates got a cool million?

SNAP Audit Excerpt 1

Spurred by the inaccurate and sensational reporting that is sure to get the local GOP calling for drug testing of all SNAP participants (with the work steered to testing labs they own) I went straight to the source at the Louisiana Legislative Auditor because it is clear you can’t trust TeeVee news types to report a straight story, Continue reading “Is TeeVee News responsible for the dumbing down of America? Slabbed calls BS on Channel 4 and their bogus SNAP performance audit reporting”