False sales and shipping

An employee creates false sales or shipping documents so that inventory is shipped to themselves or an accomplice. The resulting receivable is later written off, credited, or left to age.

Partly covered. The remaining analysis is planned.

Starter pack: Revenue and receivables review

Red flags

In the data

• Ship-to or customer address matches an employee address
• Customer matches an employee on name, phone, email, or bank account
• Receivables growing faster than revenue; sales later written off

Behavioral

• Employee arranges shipments personally or overrides shipping instructions

Internal controls

• No credit approval for new customers
• Shipping and billing not separated