Week 6: Fraud Case Study Group Project
Vanessa Ryan, Juan Caba, Rustin Prentice, Howard Miranda
Champlain College
Forensic Accounting
ACCT-280-45
Nicole Bocra
August 14, 2016 On July 31, 2015, Howard Miranda, CFO of Microstuff Inc., contacted the internal auditor Vanessa Ryan in reference to a suspected purchase and receiving scheme within the information technology department. Based on this initial accusation, an examination was conducted—which included reviews of relevant accounting, purchasing, and receiving records and interviews of appropriate personnel.
The investigation uncovered a purchase and receiving scheme that was conducted at Microstuff, Inc. The documents, information reviewed and interviews conducted by the auditor …show more content…
It would be helpful to me if I could start by asking you to basically tell me about your employment history. Okay?”
“How long have you been with the company?”
“What are your responsibilities and duties at Microstuff?”
“We know that fraud usually exists to some extent in most organizations even if the amounts are small. How do you think your company compares to others?”
“What kind of history does the company have with fraud in general, including defalcations and employee thefts?”
“Of the accounts on the company’s books, which are the most vulnerable to fraud, and why?”
“Has anyone in the company asked you to do something you thought was illegal or unethical?”
“Has anyone asked you to withhold information from the auditors, alter documents or make fictitious entries in the books?”
“Does the company have written accounting policies and procedures?
“Does the organization educate employees about the importance of ethics and antifraud programs?”
“Does the company maintain a record of fraud incidents?”
“Are any key employees experiencing financial pressures, such as debts, gambling, medical bills, or …show more content…
Interview questions directed toward Rustin Prentice, owner/vendor of R-Techs (Wells, 2014, Appendix C): Rustin appeared very calm and unconcerned through most of the interview and provided false laughter after every question was directed at him.
“What is the nature of your business?”
“How long have you been in business?”
“May I ask what field were you employed in before you opened your own business?”
“What internal controls are in place for the handling of sales, inventory, purchases, payments and cash receipts?”
“How many customers do you serve?”
“What’s your relationship with our IT director, Juan Caba? How long have you known him for?”
“We know that fraud usually exists to some extent in most organizations even if the amounts are small. How do you think your company compares to others?”
“What kind of history does the company have with fraud in general, including defalcations and employee thefts?”
“Are partial shipments annotated on sales orders or attached as separate sheets?”
“How are shortages normally handled?”
“Is there any concerns or questions you might have for me? Or anything else you would like to share with me?”
Vanessa Ryan, Juan Caba, Rustin Prentice, Howard Miranda
Champlain College
Forensic Accounting
ACCT-280-45
Nicole Bocra
August 14, 2016 On July 31, 2015, Howard Miranda, CFO of Microstuff Inc., contacted the internal auditor Vanessa Ryan in reference to a suspected purchase and receiving scheme within the information technology department. Based on this initial accusation, an examination was conducted—which included reviews of relevant accounting, purchasing, and receiving records and interviews of appropriate personnel.
The investigation uncovered a purchase and receiving scheme that was conducted at Microstuff, Inc. The documents, information reviewed and interviews conducted by the auditor …show more content…
It would be helpful to me if I could start by asking you to basically tell me about your employment history. Okay?”
“How long have you been with the company?”
“What are your responsibilities and duties at Microstuff?”
“We know that fraud usually exists to some extent in most organizations even if the amounts are small. How do you think your company compares to others?”
“What kind of history does the company have with fraud in general, including defalcations and employee thefts?”
“Of the accounts on the company’s books, which are the most vulnerable to fraud, and why?”
“Has anyone in the company asked you to do something you thought was illegal or unethical?”
“Has anyone asked you to withhold information from the auditors, alter documents or make fictitious entries in the books?”
“Does the company have written accounting policies and procedures?
“Does the organization educate employees about the importance of ethics and antifraud programs?”
“Does the company maintain a record of fraud incidents?”
“Are any key employees experiencing financial pressures, such as debts, gambling, medical bills, or …show more content…
Interview questions directed toward Rustin Prentice, owner/vendor of R-Techs (Wells, 2014, Appendix C): Rustin appeared very calm and unconcerned through most of the interview and provided false laughter after every question was directed at him.
“What is the nature of your business?”
“How long have you been in business?”
“May I ask what field were you employed in before you opened your own business?”
“What internal controls are in place for the handling of sales, inventory, purchases, payments and cash receipts?”
“How many customers do you serve?”
“What’s your relationship with our IT director, Juan Caba? How long have you known him for?”
“We know that fraud usually exists to some extent in most organizations even if the amounts are small. How do you think your company compares to others?”
“What kind of history does the company have with fraud in general, including defalcations and employee thefts?”
“Are partial shipments annotated on sales orders or attached as separate sheets?”
“How are shortages normally handled?”
“Is there any concerns or questions you might have for me? Or anything else you would like to share with me?”