Scenario: You are an assistant manager of a high-end retail store and, through routine end-of-day accounting procedures, you have discovered your long-time coworker, who is also an assistant manager and good friend, has been embezzling from the company.Use your knowledge related to the ways employees conduct fraud to build a case for how your coworker might have embezzled money.How would you utilize the store’s accounting software to access data and find the proper evidence to determine if it truly is fraud?To whom would you report your findings?Would you confront your coworker/friend?

Employees can conduct fraud in several ways. They can manipulate sales records, create fictitious…

Answered: Scenario: You are an assistant manager…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 3RQSC

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Scenario: You are an assistant manager of a high-end retail store and, through routine end-of-day accounting procedures, you have discovered your long-time coworker, who is also an assistant manager and good friend, has been embezzling from the company.

Use your knowledge related to the ways employees conduct fraud to build a case for how your coworker might have embezzled money.
How would you utilize the store’s accounting software to access data and find the proper evidence to determine if it truly is fraud?
To whom would you report your findings?
Would you confront your coworker/friend?

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