Question

Mr. I. M. Bezzle works in the purchasing department for Big Time Inc. During the 12 years that he has worked there, he has been a trusted employee and has sole responsibility for the company’s purchasing function. He started working for the company in 2003 for $30,000 a year and now makes $100,000 a year. Fellow employees and friends have noticed that his lifestyle has improved substantially since his recent promotion to purchasing manager. Based on an anonymous tip, the CEO asks you to look into the situation.

What steps would you take to investigate the possibility of fraud here?

Answer 1

It is difficult to unearth frauds which involve outsiders.

1. All the purchases made after Mr. Bezzle's promotion are to be checked for invoices, supplier track record, any relationship between supplier and Mr.Bezzle.
2. All the rejected suppliers have to be enquired, whether the manager tried to make any deal for personal
3. His computer has to be seized and electronic data to be checked for any trace of evidence. Also his search history has to be checked.
4. Suplier has to be cheched for authenticity.
5. Quality of purchases made are to be checked.
6. Call records of office phone has to checked for any abnormal number of calls.