You have been hired to investigate possible fraud losses in Greenwor Manufacturing Company. Greenwor’s attorney contacted...

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Accounting

You have been hired to investigate possible fraud losses inGreenwor Manufacturing Company. Greenwor’s attorney contacted youin confidence and told you that she has had many tips indicatingthat Chad Wits, the CFO, is somehow stealing large sums of moneyfrom the company. Wits earns a good salary of $300,000 per year,but company employees report that he has recently purchased a $4million house, a sail yacht worth at least $2 million, and oneemployee said that he spends his weekends in Las Vegas, where heloses very large sums of money on a regular basis. Some employeeshave seen him driving a new Maserati sports car near a localshopping mall, but he always arrives at work with a plain, agedfamily car.
Required a) What steps would you take to conduct yourinvestigation? b) What information would you need to develop afraud theory? c) Does the information you currently have providesufficient predication for an investigation?

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You have been hired to investigate possible fraud losses inGreenwor Manufacturing Company. Greenwor’s attorney contacted youin confidence and told you that she has had many tips indicatingthat Chad Wits, the CFO, is somehow stealing large sums of moneyfrom the company. Wits earns a good salary of $300,000 per year,but company employees report that he has recently purchased a $4million house, a sail yacht worth at least $2 million, and oneemployee said that he spends his weekends in Las Vegas, where heloses very large sums of money on a regular basis. Some employeeshave seen him driving a new Maserati sports car near a localshopping mall, but he always arrives at work with a plain, agedfamily car.Required a) What steps would you take to conduct yourinvestigation? b) What information would you need to develop afraud theory? c) Does the information you currently have providesufficient predication for an investigation?