Albrecht: Fraud Examination, 4e
Solution Manual for Principles of Fraud Examination 4th Edition Wells 1118922344 9781118922347 Full download link at: Solution manual: https://testbankpack.com/p/solution-manual-for-principles-offraud-examination-4th-edition-wells-1118922344-9781118922347/ Test bank: https://testbankpack.com/p/test-bank-for-principles-of-fraudexamination-4th-edition-wells-1118922344-9781118922347/ Chapter 7 INVESTIGATING THEFT
Discussion Questions 1. Theft investigation methods help to investigate fraud because they allow the investigator to determine specific facts about the fraud such as how the fraud was perpetrated and how the fraud was concealed. Three main theft act methods are used to investigate theft in suspected frauds. They include surveillance and covert operations, invigilation, and physical evidence. Surveillance and covert operations are used in three ways: stationary or fixed point, moving or tailing, and electronic surveillance. Invigilation is used to determine if fraud is occurring, while physical evidence is used to analyze objects such as inventory, assets, and broken locks. 2. Determining the existence of predication is the most important factor to consider when deciding whether to investigate a case of fraud. Predication is defined as circumstances that would lead a reasonable prudent professional to believe that a fraud has occurred, is occurring, or will occur. Other important factors include: a. Expected strength of evidence. b. Exposure or amount that could have been taken. c. The signal that investigation or non-investigation will send to others in the organization. d. Risks of investigating and not investigating. e. Public exposure or loss of reputation from investigating and not investigating. f. Nature of the possible fraud. 3. A vulnerability chart can be useful when coordinating theories about a suspected fraud. A vulnerability chart coordinates the various elements of the possible fraud, including assets that were taken or are missing, individuals who have opportunities to commit fraud, promising methods to use in the theft investigation, concealment possibilities, conversion possibilities, symptoms observed, pressures on possible perpetrators, potential rationalizations for the fraud, and key internal controls that had to be compromised for the theft to occur. Chapter 7
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