The management of AAAA Company has observed that the company’s cash outflows have been increasing much more rapidly than its inflows. Management cannot understand the change; from its perspective, it has been “business as usual.” Management has asked you, a fraud expert, to help them understand what is going on.
You have decided that the best place to start your investigation is to take a sample of canceled checks and verify that both the controller and another manager signed them—a procedure required by company policy.
Check numbers for the period range from 100 to 800. Using Table, follow the instructions below to select a random sample of 15 checks to examine.
• Start from the bottom left of the table.
• Move through the table from left to right and from bottom to top.
• Skip the numbers outside the relevant range.
• Use the middle three digits of each number.