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Marlin Company has suspected something fishy for several months. It has noticed that its profits have been slowly decreasing, while revenues have been increasing. After
Marlin Company has suspected something fishy for several months. It has noticed that its profits have been slowly decreasing, while revenues have been increasing. After consulting with you, a fraud expert, the company has decided to investigate the purchasing patterns of its three purchasing agents Curly, Larry, and Moe. You decide that good method for investigation into the matter is examining a random sample of purchase invoices and verifying their accuracy and validity. Curlys invoices are numbers through Larrys are through and Moes are through
When you approach Curly, Larry, and Moe, they seem somewhat defensive. They begin to harass one another, blaming each other for the mess in which they are involved. Moe even twitches their noses and slaps their heads. Curly attempts to retaliate by poking Moe in the eye but misses and hits Larry instead.
When the three were done, the CFO, Mr RutinTutin, exclaimed, Would you three stooges quit fooling around and produce the invoices immediately?
The three shuffled off to their offices, grumbling all the way. They returned a couple of hours later with photocopies of their invoices. When Mr RutinTutin asked where the original invoices were, they explained that they always copy and destroy the originals for easier storing purposed. Rather annoyed and fed up with the three morons, Mr RutinTutin hand you the stacks of photocopied invoices and tells you to do your thing.
What is wrong with this picture?
Are you suspicious that fraud is present?
What is a possible first step in verifying the invoices?
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