Fraud

In conversations with PVSS, you have talked about the long-term strategic goals and plans for expansion. You also know about the rumors of the past, and during an informal conversation with the media content and design manager, the subject of the leaked CD came up. It is obvious that the manager is still upset by the allegations. The topic of fraud came up, and the manager would like to know how this could be tracked if proper controls are in place.

Using the online library, Internet, and all course materials, research fraud and auditing fraud. In a report of 3–4 pages for the manager, complete the following:

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· Describe what fraud is and how it could be conducted.

· How would an audit attempt to detect that fraud has taken place?

· Deliberate the previous leak, and offer your opinion about the root cause.

· Could it be traced back to PVSS? (Note: this is pure speculation on your part.)

· Play devil’s advocate as both an employee who could have leaked the CD and an auditor in an effort to track and catch the employee.

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