Tom Golden discusses the discovery of fraud in the workplace in a video entitled: “My First Fraud Investigation.” Find a link to this video at After viewing the video, respond to the following questions: a. How did Tom Golden detect the fraud? b. Did he violate ethical standards in his investigation? c. If he was to develop a preliminary hypothesis, what might it be? d. Are any concepts from this chapter highlighted in this video? If so, explain. OLUTION The following relate to Tom Golden’s forensic accounting data-gathering event in the YouTube video called “My First Fraud Investigation” found at Tom Golden detected the fraud by first observing a file that was on a client’s desk with the word “complaints” written on it and then following up his observation with additional analysis. Based on his explanation, ethical standards in his investigation do not appear to have been violated. The file was in plain view along with other files available to the auditors. Also, as he discusses this, his body language remains positive (eyes open, palms upward), and there are no indications that he might not be telling the truth. A preliminary hypothesis might be: H1. That someone is concealing customer requests for equipment removal in a way that reduces equipment write-offs and overstates net income. Evidence supporting this hypothesis includes the complaint letters, the lack of charge-offs found in the accounting records, and the fact that a statistical sample used to select customers for account confirmation did not uncover any of the dissatisfied customers. The primary concept covered in this chapter emphasized by the video is that observations can result in useful forensic information.

  • CreatedMarch 04, 2015
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