Problem
Fraud Investigation
Greenwor Manufacturing Company
You have been hired to investigate possible fraud losses in Greenwor Manufacturing Company. Greenwor's attorney contacted you in confidence and told you that she has had many tips indicating that Chad Wits, the CFO, is somehow stealing large sums of money from the company. Wits earns a good salary of $300,000 per year, but company employees report that he has recently purchased a $4 million house, a sail yacht worth at least $2 million, and one employee said that he spends his weekends in Las Vegas, where he loses very large sums of money on a regular basis. Some employees have seen him driving a new Maserati sports car near a local shopping mall, but he always arrives at work with a plain, aged family car.
Task
• What steps would you take to conduct your investigation?
• What information would you need to develop a fraud theory?
• Does the information you currently have provide sufficient predication for an investigation?