The chief financial officer (CFO) of a publicly-owned restaurant chain notices that the

“bonus” for the chief executive officer (CEO) is much higher than anticipated for the year. She suspects that the CEO is committing corporate fraud by embezzling the extra money. She notifies the CEO of this discrepancy, but is told that she has calculated the amount incorrectly.

a. How would this suspected fraud be legally detected?

b. What legislation does this fall under?