(A)

Craig Ferguson, an internal auditor for HHG Online Booksellers, had been investigating a case of embezzlement fraud for nearly two months. After searching personnel and company records, visiting with former employees, employing invigilation tactics, and finally interviewing with several coworkers, Craig concluded that Lane Flemming, head of the shipping and receiving department, was involved in a large kickback scheme, costing the company hundreds of thousands of dollars. Finally, with evidence in hand, Craig met with Lane, presented his evidence, and steered Lane to confess that he was indeed the perpetrator.

1. Was the order of events in which Craig conducted his investigation in accordance with appropriate theft act investigative methods? Explain.

2. When investigating a case of fraud, why is it important to work inward toward the prime suspect, saving a confronting interview until the end of the investigation?

(B)

ABC Company has instituted good internal controls and has never, until last month, had a problem with fraud. But, several weeks ago, someone with access to keys entered the controller's office and took two company checkbooks. Since then, several checks have been forged totaling an amount of $5,670. You are a certified fraud examiner and have been recruited to investigate the case.

Which theft act investigative method(s) should you use in this investigation?