QUESTION 5 Notes: You are a Certified Fraud Examiner who has been cngaged by Alora Manufacturing Sdn. Bhd. to investigate allegations of fraud. Alora's management suspected that their purchasing manager might be involved in an embezzlement scheme. Below (part A and part D) are two sepurule, bul reluled, procedures you have undertaken in relation to the engagement 1) For educational purposes, only 36 transactions are shown here. In practice. there could be thousands of transactions that investigator may analyse 2) Below are suggestions for probability for Benford's Law First Digit Rule (in %): some numbers are not relevant. A. 1.2 9.7 2.4 12.3 4.6 17.6 51 30.1 3.8 4S.S 6 6.7 SD. 7.9 76.3 Your review of the purchasing menger's personnel lile reveals that he has live children, two of whom are in universities. His wife has passed away few years ago and he is taking care of his sick mother too. Furthermore, he has not received a pay raise in two years now. You start to suspect that the purchasing manager might have a non- sharcabic financial problem that could Icad him to steal from the company, REQUIRED: la) Analyse and decide whether fraud might have occurred in this organization. Usc Benford's Law - First Digit Rule to support your argument You also learn that two check signatures which means additional verification) Te required for payment of invoices exceeding RM10,000; and competitive bidding is required for any transactions exceeding RM20,000. (b) Identify the checks (from those listed in the table above) that you will consider reviewing further Amed with this information, you begin your investigation by obtaining a listing of all disbursements that occurred over the entire year. The data includes a description of the disbursement, the related ringgit amount, and a corresponding check number as seen in this except: 1c) Provide justification for your answer in (b) above. id) Explain TWO (2) possible symptoms that could be observed by the co-workers of the purchasing manager should he is suspected to be involved in some fraud schemes Check Description No. 401 AZ Supplies 4CM2 Nur Fuckservice 400 York Int 4004 Yon Stationary 4CMS 13 Mari 4036 . Jeans 4007 Suria Silk 40X8 AZ Supplies 4089 Nur Foodservice 4010 Jeans 4011 Dubai Fabrics 4012 4 A7 Supplies 4013 AZ Supplies 4014 Dubai Fabrics 4015 Dubai Fabrics 4016 Duhai Fabrics 4017 Nur Foodservice 4018 Duhai Fabrics Amount (RM) 19, SCH) 9.9(N) 9,800 191.59 2.270) 1,NOS 4.546 19.20) 9,950 3.730 26,700 19.4%) 19,486 21.90) 3,NCH) 5,160 9,800 S.500) Check Description No. 4019 B Mart 4021) B Mar 4021 B Mart 4022 Yon Stationary 4023 13 Muri 46124 York Int. 4025 Suria Sill: 4026 Jlcans 4027 Duba lubrics 4028 Dubai Fabrics 4029 B Mart 40.30 Yuni Stationary 4031 J Jeans Suria Silk 4037 A7 Supplies 4034 13 Mart 4035 Yon Stationary 40.36 Duhai Fabrics Amount (RM) 1 NC) 760) 254 235 1.045 9.96 4.478 6.770 28,650 6.100 890 .3019 4,670 4.650 19,516 378 689 7.433 4032 QUESTION 5 Notes: You are a Certified Fraud Examiner who has been cngaged by Alora Manufacturing Sdn. Bhd. to investigate allegations of fraud. Alora's management suspected that their purchasing manager might be involved in an embezzlement scheme. Below (part A and part D) are two sepurule, bul reluled, procedures you have undertaken in relation to the engagement 1) For educational purposes, only 36 transactions are shown here. In practice. there could be thousands of transactions that investigator may analyse 2) Below are suggestions for probability for Benford's Law First Digit Rule (in %): some numbers are not relevant. A. 1.2 9.7 2.4 12.3 4.6 17.6 51 30.1 3.8 4S.S 6 6.7 SD. 7.9 76.3 Your review of the purchasing menger's personnel lile reveals that he has live children, two of whom are in universities. His wife has passed away few years ago and he is taking care of his sick mother too. Furthermore, he has not received a pay raise in two years now. You start to suspect that the purchasing manager might have a non- sharcabic financial problem that could Icad him to steal from the company, REQUIRED: la) Analyse and decide whether fraud might have occurred in this organization. Usc Benford's Law - First Digit Rule to support your argument You also learn that two check signatures which means additional verification) Te required for payment of invoices exceeding RM10,000; and competitive bidding is required for any transactions exceeding RM20,000. (b) Identify the checks (from those listed in the table above) that you will consider reviewing further Amed with this information, you begin your investigation by obtaining a listing of all disbursements that occurred over the entire year. The data includes a description of the disbursement, the related ringgit amount, and a corresponding check number as seen in this except: 1c) Provide justification for your answer in (b) above. id) Explain TWO (2) possible symptoms that could be observed by the co-workers of the purchasing manager should he is suspected to be involved in some fraud schemes Check Description No. 401 AZ Supplies 4CM2 Nur Fuckservice 400 York Int 4004 Yon Stationary 4CMS 13 Mari 4036 . Jeans 4007 Suria Silk 40X8 AZ Supplies 4089 Nur Foodservice 4010 Jeans 4011 Dubai Fabrics 4012 4 A7 Supplies 4013 AZ Supplies 4014 Dubai Fabrics 4015 Dubai Fabrics 4016 Duhai Fabrics 4017 Nur Foodservice 4018 Duhai Fabrics Amount (RM) 19, SCH) 9.9(N) 9,800 191.59 2.270) 1,NOS 4.546 19.20) 9,950 3.730 26,700 19.4%) 19,486 21.90) 3,NCH) 5,160 9,800 S.500) Check Description No. 4019 B Mart 4021) B Mar 4021 B Mart 4022 Yon Stationary 4023 13 Muri 46124 York Int. 4025 Suria Sill: 4026 Jlcans 4027 Duba lubrics 4028 Dubai Fabrics 4029 B Mart 40.30 Yuni Stationary 4031 J Jeans Suria Silk 4037 A7 Supplies 4034 13 Mart 4035 Yon Stationary 40.36 Duhai Fabrics Amount (RM) 1 NC) 760) 254 235 1.045 9.96 4.478 6.770 28,650 6.100 890 .3019 4,670 4.650 19,516 378 689 7.433 4032