The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145.

The effect of the accounts payable (A/P) clerk will eventually be a fraud.

Explanation:

Note: This question is not complete. A complete question is therefore provided before answering the question as follows:

The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and creates two purchase orders for random car detailing services for $75 and $70. She writes the checks to pay these new vendors knowing the controller will only pay close attention to checks over $100. She delivers the checks to her friend to deposit in his bank account, and then he writes her a personal check for the full amount of $145.

Eventually, what will be the effect of her actions?

The explanation to the answer is now given as follows:

Fraud can be described as an intentional wrongful or criminal deception that is designed in such a that it will give the perpetrator financial or personal gain that is not lawful.

In order to identify and prevent fraud, each company usually put in place what is known as fraud detection. Fraud detection refers to different activities that designed for the purpose of safeguarding the money, property and other valuables from being stolen or unlawfully taken through false pretenses.

When there is no frau detection in a company, it will be asy to carry out the kind of actions of the the A/P clerk in the question and it will always result in a fraud.

Therefore, the effect of the accounts payable (A/P) clerk will eventually be a fraud.

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