John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. John Doe could spend his time and money pursuing witnesses to the crime or collecting documents that would confirm fraudulent activities. As with most fraud examiners, he chooses to collect supporting documents instead of pursuing witnesses. Explain why John and most other fraud examiners prefer documents over witnesses; then describe elements of good document care.
John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. John Doe could spend his time and money pursuing witnesses to the crime or collecting documents that would confirm fraudulent activities. As with most fraud examiners, he chooses to collect supporting documents instead of pursuing witnesses. Explain why John and most other fraud examiners prefer documents over witnesses; then describe elements of good document care.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 25MCQ
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John Doe, a fraud examiner, has been hired by ABC Corporation to investigate a shortage of cash, which management thinks is being caused by fraudulent behavior. John Doe could spend his time and money pursuing witnesses to the crime or collecting documents that would confirm fraudulent activities. As with most fraud examiners, he chooses to collect supporting documents instead of pursuing witnesses. Explain why John and most other fraud examiners prefer documents over witnesses; then describe elements of good document care.
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