Outright Fraud - Hiding Materials from Auditors

[Ralph Kolts]

How to pass an audit

Years ago I was talking with the QA Manager at a major aerospace/defense contractor. He began reminiscing about the “good old days” and about the time they had a big government audit coming in. They had a lot of junk and they didn’t know what to do with it – things like limited life materials that had expired, scrap parts they didn’t want to throw away, etc. They didn’t want the auditors to find it. Anyway, they decided to load these items into trucks (3 truck loads) and for three days these trucks did nothing but drive continuously around the plant, until the audit was finished.

He was totally serious, and I believed him.

 

[Marc]

Yes - I've seen similar situations. Fraud is fraud no matter how you look at it... Shame on you for not reporting it, if you didn't (which I *assume* you didn't). The responsible person should be tried in a court of law for fraud.

The “good old days” was when a company could easily get away with outright fraud (as many still do today...).

 

[little__cee]

Better than the trailer!

A friend told me a story of how they loaded all of their junk into a storage trailer and put it out back -- the auditor busted them.

Guess auditors must know to look for the sudden appearance of a trailer out back, eh?

 

[ralphsulser]

Years ago I was talking with the QA Manager at a major aerospace/defense contractor. He began reminiscing about the “good old days” and about the time they had a big government audit coming in. They had a lot of junk and they didn’t know what to do with it – things like limited life materials that had expired, scrap parts they didn’t want to throw away, etc. They didn’t want the auditors to find it. Anyway, they decided to load these items into trucks (3 truck loads) and for three days these trucks did nothing but drive continuously around the plant, until the audit was finished.

He was totally serious, and I believed him.

I have seen this before too, but the trucks were taken off site and parked until the visit was over

 

[D.Scott]

Hmmmmmmmm !!!!!!!

 

[Cari Spears]

HMMMM - indeed. Maybe not for the same reason.

Welcome to the cove Ralph Kolts.

 

[Al Rosen]

Let's not get carried away.

https://elsmar.com/elsmarqualityforum/showpost.php?p=73818&postcount=87

 

[gpainter]

I do not htink that there are many companies that do not hide one thing or another. Just look at the funny audit stories thread. Most audit prep classes operate on the do not ask, do not tell policy. I do believe that there are limits.

 

[Wes Bucey]

Two Enron traders, from the office where the tapes were made, have admitted manipulating energy prices and pled guilty in court. Another goes on trial in October. Former Enron chief Ken Lay is the only top company official who has never been charged with any crime.

Please consider editing this diatribe. This is not the Coffee Break Forum.
You have at least one factual error: Ken Lay has been indicted.
Here's at least one link to that effect:
https://money.cnn.com/2004/07/08/news/newsmakers/lay/

 

[Jen Kirley]

I lived in a neighborhood in San Diego California where, not many months after we moved away, households were experiencing $600-per-month electric bills. Friends and neighbors of mine had these crippling electric bills, including some really nice retired people.

My family would have been driven into bankruptcy were that to go on for very long.