A$.$ Doe, IT application manager for The Coffee Company, signed a consulting services agreement with Fictitious Consulting Company $($FCC$).$ Doe was required to obtain written approval of the contract from a supervisor but forged the supervisor's signature. More than $100$ invoices came in$,$ which were approved with Doe's initials. Even though Doe's approval authority was only $$5,000,$ many of the invoices were for more than $$40,000.$

FCC was not registered in the state or listed in telephone directories. The phone number was for a cell phone registered to Doe, and the mailing address was a post office box. When Doe's supervisor asked to meet the FCC consultants, Doe was evasive, saying they "had just left" or "they were working away from the office." Ultimately, Doe told her supervisor that she had dismissed FCC$,$ but she simply moved the charges to capital accounts that the supervisor did not monitor.

The Coffee Company paid more than $$3\mathrm{.}7$ million to FCC between December $1999$ and August $2000.($Source: M$.$ Atkinson and M$.$ Biliske, "Grounds for Dismissal," Internal Auditor, February $2005.)$

Your assignment is to write the "audit approach" portion of the case organized around these sections:

Required:

Objective. Express the objective in terms of the facts supposedly asserted in financial records, accounts, and statements.