Question

Susan Green works in the purchasing department for Aftermarket Parts. During the past 12 years, she has been a very trusted employee and has sole responsibility for the company's purchasing function. She started working for the company at a salary of $35,000, and today she earns $65,000 a year. Fellow employees and friends have noticed a significant lifestyle change. Susan, a single mother of three minor children, is driving a new BMW, and last month purchased a 3,200 square foot lakefront residence in a gated community. Based on an anonymous tip, the CEO has asked you, the company's fraud examiner, to investigate the situation. What steps would you take to investigate the possibility of fraud?

Answer 1

1.Appoint an Internal Auditor in purchasing department.

2.Conduct due deligince & recommandations from such should be implemented to create sound internal controls.

3.Make an investigation on Susan w.r.t her earnings & Investments without her knowledge.

4.Check for any Non compliances.

5.Find any other sources which are motivating Susan to do illegal things.

6.Identify whether any Cash Losses or Inventory Losses were reported in last years during the couse of employment of Susan.