Harry Mendelson began his fraud investigation with great optimism. He was investigating a simple embezzlement from accounts receivables, in a small business with only one employee, and only the bookkeeper had ever had access to the Intuit QuickBooks accounting files. The bookkeeper was fired the day before Harry arrived. When Harry opened the QuickBooks system, he immediately noticed all kinds of strange entries that made no sense at all. After several hours of carefully studying the cash and accounts receivables, he concluded that the QuickBooks records were of no help.
Next he discovered that there were no paper statements or deposit records for the company’s bank account. After obtaining the online access credentials for the company’s bank account, he was able to log in and view bank statements for the last 12 months, but all deposits simply showed up as lump sums with no reference to which portions were made in cash or in checks from customers.

What do you think Harry should do? What can he do? Is any kind of reasonable investigation possible?

  • CreatedMarch 20, 2015
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