1. Using private industry as a potential background for developing your fraud prevention and detection strategy, what type of external resource(s) would you recommend be established as soon as possible and included in the company’s marketing brochures as a value-added differentiating service with regards to reporting potential fraud that may be occurring in the asset disposition process? Keep in mind, this is not a SEC or a Securities Act situation.
2. Assume after implementing the external resource described in #1 above, it comes to your attention that Bob, a member of the Jones’ family, may be improperly benefitting from the disposition of his late Dad’s assets by selling certain assets for significantly less than fair market value before the formal auction of tangible assets. Per other family members, Bob has been acting very strange since his Dad’s passing. Large bags have appeared under his eyes, Bob has been very short and flown off the handle in just about every discussion or phone call with the other family members, and Bob is suddenly driving a brand-new Porsche after driving an old used Toyota for the last 15 years.
• What steps would you start with to investigate this suspected fraud before interviewing either Bob or any of the family members?
• After the first steps in your suspected fraud investigation are completed above, would you interview Bob? Why or why not?
• Describe in detail how you would conduct an admission-seeking interview with Bob. Be specific. See the hyperlink below to Interview Theory and Application prepared by the Association of Certified Fraud Examiners to help you prepare your detailed answer to this question.
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