1. What internal controls might have prevented a former Smucker employee from stealing $4.1 million over 16 years?
Original blog posting (November 4, 2014)

2. Smucker
In October 2014, former Smucker employee, Mark Kershey, charged with defrauding the J.M. Smucker Company for more than $4.1 million over 16 years
Kershey was chief airplane mechanic for Smucker at the Akron-Canton Airport

3. Fictitious invoices
Kershey billed Smucker for non-existent parts or work he performed as part of his salaried duties
Kershey could approve any invoices under $10,000
The few invoices above $10,000 were approved by his supervisor based on trust

4. PO Box used for invoicing
Kershey set up a post office box in the name of Aircraft Parts Services Co (APS), which was a fictitious company
Invoiced Smucker using non-sequential invoice numbers
Kershey bought two airplanes and paid for personal residence with funds

5. 3 checks were not cashed
Scheme began to unravel when three checks to APS were not cashed
Clerk at Smuckers questioned Kershey
FBI investigated and charged Kershey

6. Question 1
What internal controls could have been used to prevent Kershey from carrying out the false billing scheme?

7. Question 2
What factors might have contributed to the weak internal control environment that allowed this scheme to exist for 16 years?

8. Question Recap
What internal controls could have been used to prevent Kershey from carrying out the false billing scheme?
What factors might have contributed to the weak internal control environment that allowed this scheme to exist for 16 years?

9. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Related video resources can be found at Questions or comments? Contact Dr. Wendy Tietz at