You are a new summer intern working for a major professional services firm. During your lunch break each day, you and a fellow intern Bob eat at a local sandwich shop. One day, Bob's girlfriend joins you for lunch. When the bill arrives, Bob pays with a company credit card and writes the meal off as a business expense. Bob and his girlfriend continue to be "treated" to lunch for a number of days. You know Bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. When you ask Bob about the charges, he replies, "Hey, we're interns. Those memos don't apply to us. We can expense anything we want. " Is fraud beig committed against the firm?

Question

Makhi Trujillo

Business

23 March, 18:16

You are a new summer intern working for a major professional services firm. During your lunch break each day, you and a fellow intern Bob eat at a local sandwich shop. One day, Bob's girlfriend joins you for lunch. When the bill arrives, Bob pays with a company credit card and writes the meal off as a business expense. Bob and his girlfriend continue to be "treated" to lunch for a number of days. You know Bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. When you ask Bob about the charges, he replies, "Hey, we're interns. Those memos don't apply to us. We can expense anything we want. " Is fraud beig committed against the firm?

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Answers (1)

Know the Answer?

Austin Willis · Answer 1

The correct answer is: Yes, Bob is committing fraud against the firm.

Explanation:

If a memo is issued by a company, it is because one of the firm's regulations is being breached. In the example, Bob received a memo because he was using a corporate credit card for casual meal expenses. He was even paying his girlfriend's meals with that corporate card. However, Bob is not paying much attention to the company's notifications under the excuse that he is an intern but, whether he is officially an employee or not yet, he is committing fraud against the firm.