Khalil Jamal is a purchasing manager for Frontyard Books. Frontyard, is one of the country’s leading producers of textbooks for the college and university market. Frontyard's purchases average about $75 million annually, consisting mostly of paper stock and covering used in the manufacturing process. The purchasing function is principally handled by three purchasing agents. Khalil Jamal is the purchasing manager and has two other buyers who report to him. All internal fraud matters within the company are referred to Samir Ahmad, a Certified Fraud Examiner. On January 28, Samir received a telephone call from an anonymous caller. The caller claimed that he was a “long-term” supplier to Frontyard in the area of books and sundries, and magazines. The caller said that since Khalil Jamal was appointed as a purchasing manager for Frontyard several years ago, he has been systematically “squeezed out” of doing business with Frontyard. 

Required: The first three steps of the scientific approach used by forensic accountants are:

 (a) Define the purpose (or problem)

 (b) Form a hypothesis 

(c) Gather evidence to test the validity of the hypothesis (Evidence-gathering techniques commonly include: direct observations, interviews, structured activities, financial statements analysis, statistical analysis) Suppose that you are Samir Ahmad (the forensic accountant assigned to this case in order to determine any potential fraud). Describe how you would perform the first three steps.. Multi-Line Text.

Answer rating: 100% (QA)

1 First of all we will define an actual problem statement that is Anonymous call received saying Khalil Jamal was involved in squeezing out the business 2 After determining the problem statement we wi... View the full answer