Cash Shortage Investigations
Read the following document:
- Fact Pattern SheetDownload Fact Pattern Sheet
Imagine that you have been called in as a fraud investigator to examine why the cash shortages described have been occurring. You also must identify who is committing the fraud, and you must accumulate evidence to obtain a conviction against the individual(s) involved.
Prepare a memorandum that addresses three of the following six items in detail:
- What is the type of fraud being investigated? Explain the rationale.
- a. Who are the possible perpetrator(s) of the cash shortages.b. What are some of the motivating factors and criminal opportunities that would cause them to perpetrate such fraud?c. What patterns of behavior point towards a certain individual(s) being the perpetrator(s) of the cash shortages?
- Based on the facts presented, identify possible deficiencies within the internal control system of ABC. Assuming this was a publicly held company, what are some of the possible violations of the Sarbanes-Oxley ActLinks to an external site.? List all sections of the Act that have potentially been violated and present evidence to support your position. How can the deficiencies of the internal control system be mitigated?
- Identify any conflicts of interest within this case and analyze possible outcomes that may occur.
- For investigative purposes, what evidence needs to be procured to substantiate a conviction for the individual(s) involved? List all documents needed and indicate which items will require a subpoena or search warrant, assuming that you are a fraud investigator from a state agency authorized to conduct such investigations.
- After obtaining and reviewing the evidence, do you feel that you are ready to interview the perpetrator(s)? What is your recommended approach to such an interview(s)? What questions (minimum of ten would you most likely ask?
Then address the following in your report as the fourth item:
- Present your findings in this investigation stating:* The name(s) of the accused.
- Evidence that links the person(s) to the crime.
- Charges recommended to the prosecutor.
Required:
- Submit your memorandum in a 3-4-page Microsoft Word document.
- Ensure your responses are well-written.
- Include at least two credible references in addition to the course textbook.
