Assume that an organization maintains and uses one checking account. Further assume that a representative of the bank where the checking account is located has alerted law enforcement that the checking account has deposit activity that has several cash deposits that are just below $10,000. The U.S. Treasury Department has reporting requirements for financial institutions that require that cash transactions of $10,000 or more be reported to the U.S. Federal Government on a Currency Transaction Report (CTR) form. CTRs are analyzed using big data and data analytics techniques to identify potential money launderers.

Case Discussion: Consider the following questions:

If the deposits observed by the bank representative are less than $10,000, why is the bank representative concerned?

Assuming that an examination of this issue is launched by law enforcement, what is the scope of the examination?

Assuming that an examination of this issue is launched by law enforcement, should a forensic accountant or fraud examiner subpoena all bank and company records for the past five years? Why or why not?

What would be the first step in an examination of this issue?