Reference no: EM132535199

Question 1: Determine the customers and the amount lost by each to allow Southeast to reimburse customers' losses.

Question 2: Identify violations of existing policies and procedures and make recommendations for additional controls that could prevent future frauds from occurring.

Question 3: Supply the FBI with evidence in the case for them to conduct their own investigation, especially in the cases not considered large enough by FBI standards.

The Conclusion of the Case

• The FBI requested the internal auditor's spreadsheets documenting the total loss suffered by Southeastern customers. The FBI and U.S. Attorneys used the worksheets to prosecute Ms. Davenport. The spreadsheets listed 241 fraudulent transactions totaling a $465,303.58. Ms. Davenport pleaded guilty, was convicted, and sentenced to five years probation, one month in jail, and no restitution.

Required

Question 4: How would the auditors demonstrate that all the accounts that suffered losses (actual accounts and potential accounts were reviewed?

Question 5: What information should work papers contain to support a fraud case?

Question 6: What information should work papers contain to support a regular audit? Compare and contrast the differences in the information needed for a fraud case and a regular audit

Question 7: How would you review the work papers prepared for this case?

Question 8: Prepare an audit program that an internal auditor assigned to this case would use?

Question 9: What changes in internal controls would you recommend after reviewing the facts of the case?