Overview
In Milestone Three, you will describe the testing of the hypothesis you developed in Milestone Two. This assignment discusses specific techniques for gathering evidence and analyzing data. In testing your hypothesis, you will consider analytical procedures, fraud risk inquiries, data analysis tools, and online resources used in the investigation.
Prompt
For this milestone, you will submit the Testing of Hypothesis section (Section III) of the final project. Be sure to address the feedback you received from your instructor on Milestones One and Two before addressing all of the critical elements as outlined below.
Specifically, the following critical elements must be addressed:
- Testing of Hypothesis
- What analytical tests could you perform? How do you confirm the sources for your information are reliable?
- What fraud risk inquiries are necessary? How could they be used to test your fraud hypothesis?
- What additional evidence-gathering procedures could you perform based on the response to inquiries? Support your response with examples.
- Analyze the financial information for anomalies and potential signs of fraud. What conclusions can you draw?
- What data analysis tools did you use? Why did you opt for these tools in particular?
- What online resources could you use to test the hypothesis, particularly related to the fraud suspect?
What to Submit
Your paper must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources cited in APA format.
Milestone Three Rubric
| Criteria | Proficient (100%) | Needs Improvement (80%) | Not Evident (0%) | Value |
|---|---|---|---|---|
| Testing of Hypothesis: Analytical Tests | Determines which analytical tests could be performed and how to confirm that the sources are reliable | Determines which analytical tests could be performed, but does not discuss how to confirm that the sources are reliable, or discussion is cursory or contains inaccuracies | Does not determine which analytical tests could be performed | 15 |
| Testing of Hypothesis: Fraud Risk Inquiries | Determines which fraud risk inquiries are necessary and how the fraud risk inquiries can be used to test the fraud hypothesis | Determines which fraud risk inquiries are necessary, but does not determine how the fraud risk inquiries can be used to test the fraud hypothesis | Does not determine which fraud risk inquiries are necessary | 15 |
| Testing of Hypothesis: Additional Procedures | Identifies additional evidence-gathering procedures that could be performed based on the response to inquiries, and supports response with examples | Identifies additional evidence-gathering procedures that could be performed based on the response to inquiries, but does not support response with examples | Does not identify additional evidence-gathering procedures that could be performed | 15 |
| Testing of Hypothesis: Conclusions | Draws conclusions based on an analysis of the financial statements | Draws conclusions, but does not base them on an analysis of the financial statements, or conclusions are cursory or contain inaccuracies | Does not draw conclusions | 15 |
| Testing of Hypothesis: Data Analysis Tools | Explains which data analysis tools were used and why those tools were selected | Explains which data analysis tools were used, but does not explain why they were selected | Does not explain which data analysis tools were used | 15 |
| Testing of Hypothesis: Test | Describes which online resources were used to test the hypothesis, particularly related to the fraud suspect | Describes which online resources were used to test the hypothesis, but does not address the fraud suspect | Does not describe which online resources were used to test the hypothesis | 15 |
| Articulation of Response | Submission has no major errors related to citations, grammar, spelling, syntax, or organization | Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas | Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas | 10 |
| Total: | 100% |