Discussion: Whether to conduct an investigation, and how
Robert Ford, Director of Internal Auditing, received an anonymous tip from an employee in one of the high tech manufacturing plants. The employee noted that there was a major embezzlement taking place in one of the divisions. Internal audit had completed a routine review of internal control of that division the previous year and found that the control system was properly designed and operating effectively. Only minor recommendations were made, and the next review was scheduled for 3 years.
The employee noted the erratic behavior and lavish lifestyle of the plant controller and stated that the controller has been overriding existing controls so that any audit would not be able to detect the embezzlement. The plant controller is well respected and highly trusted by the CEO and CFO, and their families are involved in the same civic and religious organizations. Investigating the plant controller could cause considerable disruption in the company and in the personal lives of the employees.
Assuming the company decides to move forward with the investigation, prepare for the interviews: Note the order of the witnesses that would be interviewed and how you would plan, conduct, and document your interviews. Discuss how you would conduct an admission-seeking interview of the plant controller.
Your report should address the issues in the situation above and include your research on best practices in interviewing and taking witness statements. Include a minimum 2 other reference sources beyond the textbook and course materials