An internal auditor has drafted the following report on a recently completed fraud investigation and has submitted it to you, the internal audit director, for review:

Report The internal audit department, upon analysis of cost components, suspected that excessive amounts were being expended for materials. Upon investigation, we discovered that low competitive bids were being discarded to ensure the use of a single supplier who made kickbacks to purchasing agents.

Mr. Jopnes, the manager of the purchasing agent, has confessed the collusive activities and has indicated the involvement of Mr. Thomas, Mr. Lee, and Ms. Cox.

We recommend that these employees be fired and that legal action be taken so that future defalcations can be effectively deterred.
The internal audit evidence collected by directly soliciting competitive bids proves that the purchasing agents are guilty.
Distribution: Normal recipients of such reports.
Required:
Summarize your review points.