Question
You are performing an audit of a small Internet start-up company that recently went public. During the audit, you frequently converse with the employees, with
You are performing an audit of a small Internet start-up company that recently went public. During the audit, you frequently converse with the employees, with whom you have a comfortable relationship. In on conversation, an employee mentions the strange behavior of a co-worker. Apparently, this suspect employee comes to work very early and stays late. He is stressed at work and rather irritable. Although many of the company's founders are enjoying the economic fruits of the initial public offering (IPO), this person did not own any stock in the company at the time of the IPO and thus did not earn much money when the company went public. Nevertheless, this person drives a new Porsche Boxter. Is there sufficient evidence to determine whether this employee appears to be committing fraud?
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