Scenario
You are an internal auditor for Fit Right, a fashion retailer. You are investigating financial anomalies in inventory records and sales figures. You find that there is a spike in payments to Rainbow Textiles, a fabric vendor. There are reports of employees engaging in suspicious behavior, such as the purchase of a yacht by the purchasing specialist. The purchasing specialist has authority to approve new vendors and award contracts at her discretion. You received a tip regarding a relationship between the purchasing specialist and the company’s largest vendor. You are tasked with preparing an email to the senior internal auditor discussing if predication exists for a fraud examination.
The skills practiced in this activity will help to support you in your project.
Directions
Write a professional email determining predication for a fraud examination.
Specifically, you must address the following rubric criteria:
- Describe the steps involved in determining the likelihood of fraud occurring in the organization in the scenario.
- Explain the importance of predication in the fraud examination in the scenario.
- Summarize the evidence to create predication in the fraud examination in the scenario.
What to Submit
Submit your email as a 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.