Question
As a second-year senior at the CPA firm, you already had some familiarity with AIM from your due diligence work preceding the anonymous tip and
As a second-year senior at the CPA firm, you already had some familiarity with AIM from your due diligence work preceding the anonymous tip and the internal auditors concerns about AIMs operations and from the background information you gathered for the engagement partner. The engagement partner has asked you to assist the forensic accounting divisions investigation. Prepare a memo to your forensic team manager addressing any THREE of the following tasks. Task 1: Read the case and examine the tables and Figure 1 carefully. During your reading, highlight any concerns or possible issues (red flags). List all concerns and issues in your memo to your forensic team manager. Task 2: Evaluate whether the possible issues (red flags) identified in Task 1 are indicative of fraud. Mark these clearly on the list in the memo prepared in Task 1. Choose any two of these potential frauds. For each of these two potential frauds, draw a basic flowchart showing what should happen and what actually happens. Be sure to include an accompanying narrative to explain the fraud. Flowcharts can be handwritten, or computer generated. Task 3: For each of the potential fraud issues marked on the list in Task 2, provide detailed instructions for investigation techniques that could be used to verify whether a fraudulent activity is taking place. Include factors that might limit the teams ability to gather evidence for the investigation. Task 4: Based on the evidence given in the case, Tables 1, 2, 3, and 4 and Figure 1, identify and explain any internal control weaknesses. In a new section of the memo to the forensic team manager, provide detailed suggestions for controls that may mitigate the weaknesses that you have identified.
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