Case Scenario:
As the director of the internal auditing and fraud investigation departments for a large retail company that buys and sells large volumes of products, you have received an anonymous tip from a confidential employee in one of the high-tech warehouses. The confidential employee noted that there was a major embezzlement taking place in one of the divisions. Members of the internal audit department had completed a routine review of the internal control of that division the previous year, and they found that the control system was properly designed and operating effectively. Only minor recommendations were made, and the next review is due 3 years later.
The confidential employee noted the erratic behavior and lavish lifestyle of the warehouse controller and stated that the controller has been overriding existing controls, which would prevent any audit from being able to detect the embezzlement. The warehouse controller is well-respected and highly trusted by the chief executive officer (CEO) and the chief financial officer (CFO), and their families are involved in the same civic organizations. Investigating the plant controller could cause considerable disruption in the company and the personal lives of the employees.
Please answer 3 of the following questions. As you answer the questions, you must provide support or evidence that will enhance and empirically prove your answers. Academic criminal justice articles or real life criminal justice findings that are not found in journals or other academic sources must be used in supporting your answers. Please use APA style for all cited sources, including your resource page.
- Given the situation, discuss some of the options that the company has for handling this situation.
- Assuming you decide to investigate these allegations, describe the investigation steps.
- In preparation for the interviews, note the order of the witnesses who would be interviewed and how you would plan, conduct, and document your interviews.
- Discuss how you would conduct an admission-seeking interview of the plant controller.