1. What clues caused Jane to suspect that fraud was involved?
The first clue that Jane came across as suspicious was that some of the checks did not have a complete endorsement from the collectors. This would be suspicious because if a check was cashed without having the necessary endorsements there must be a breach in the company’s internal controls. After looking further into the situation Gus and Jane notice that along with the endorsement problem the signatures of several different individuals looked very similar. Finding forgery is a big red flag because it is illegal to forge someone’s signature. Not only were the checks forged by what they suspected was one individual, the checks that had been signed were all cashed in at the same convenience store as rushed payments. Not only was it close to their place of employment, but it was out of the way for most of the individuals whose names were on the checks lived.
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Why is it important for fraud examiners to follow up on even the smallest inconsistencies?
It is important for a fraud examiner to follow up on the smallest inconsistencies because not only is it what they are trained for but inconsistencies in reporting be the biggest indication that something major is going on. Fraud examiners must consider that the smallest inconsistencies are caused by someone trying to fabricate a plot to steal. A fraud examiners job is to study every inconsistency to uncover any fraudulent crime committed.
3. In an attempt to identify possible suspects, the auditors researched the personal files of every employee in the department. What things might they have been looking for to help them identify possible suspects?
They were looking for people who might have a motive to steal from the company including financial hardships an employee recently went through to those who would have access to that part of the
The first clue that Jane came across as suspicious was that some of the checks did not have a complete endorsement from the collectors. This would be suspicious because if a check was cashed without having the necessary endorsements there must be a breach in the company’s internal controls. After looking further into the situation Gus and Jane notice that along with the endorsement problem the signatures of several different individuals looked very similar. Finding forgery is a big red flag because it is illegal to forge someone’s signature. Not only were the checks forged by what they suspected was one individual, the checks that had been signed were all cashed in at the same convenience store as rushed payments. Not only was it close to their place of employment, but it was out of the way for most of the individuals whose names were on the checks lived.
2. …show more content…
Why is it important for fraud examiners to follow up on even the smallest inconsistencies?
It is important for a fraud examiner to follow up on the smallest inconsistencies because not only is it what they are trained for but inconsistencies in reporting be the biggest indication that something major is going on. Fraud examiners must consider that the smallest inconsistencies are caused by someone trying to fabricate a plot to steal. A fraud examiners job is to study every inconsistency to uncover any fraudulent crime committed.
3. In an attempt to identify possible suspects, the auditors researched the personal files of every employee in the department. What things might they have been looking for to help them identify possible suspects?
They were looking for people who might have a motive to steal from the company including financial hardships an employee recently went through to those who would have access to that part of the