Reference no: EM133041892

Question - 1. Once there is predication of fraud, it must be investigated to determine the who, why, how and how much aspects of the fraud. There are four common ways that fraud are investigated. Which of these methods is most efficient and effective to use and the order in which they are used is usually dictated by the specific type of fraud committed.

a. List and explain briefly three (3) factors should be considered when deciding whether or not to investigate a case of fraud.

2. Selvaraj, an internal auditor for MFG Online Booksellers, had been investigating a case of embezzlement fraud for nearly two months. After searching personnel and company records, visiting with former employees, employing invigilation tactics and finally interviewing several co-workers, Selvaraj concluded that Mastura, head of the shipping and receiving department, was involved in a large kickback scheme, costing the company hundreds of thousands of Ringgits. Finally, with evidence in hand, Selvaraj met with Mastura, presented his evidence and convinced Mastura to confess that she was indeed the perpetrator.

i. Was the order of events in which Selvaraj conducted his investigation in accordance with appropriate theft act investigative methods? Explain.

ii. When investigating a case of fraud, why is it important to work inward toward the prime suspect, saving a confronting interview until the end of the investigation?

3. Shamsudin, a fraud examiner, has been hired by Tanjong Malim Jaya Sdn. Bhd. to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. Shamsudin could spend his time and money pursuing witnesses to the crime or collecting documents that would confirm fraudulent activities. As with most fraud examiners, he chooses to collect supporting documents instead of pursuing witnesses.

i. Explain why Shamsudin and most other fraud examiners prefer documents over witnesses

ii. Describe any three (3) elements of good document care.