Question

"Case 3Adam Jones, the purchasing manager for ACME Cor-poration, is under suspicion for committing fraud. Hissuperiors believe he is accepting kickbacks and bribesfrom various vendors. As the company’s fraud expert,you are investigating this possible fraud and are pre-paring to interview Adam. You suspect that Adam willbe defensive and possibly hostile when interviewed.1.What investigation procedures should be com-pleted before your admission-seeking interviewwith Adam?2.If you find evidence that proves Adam is commit-ting fraud at ACME, what might his initial reactionbe when he is confronted? What other emotionsand/or reactions might you expect from Adam?How do you know this?"

Answer 1

Answer:

ACME Corporation

Fraud Suspicion of Adam Jones:

1. Pre-admission-seeking Investigation Procedures:

a. Review the company's policies and procedures

b. Interview those who raised the suspicion to establish reasonable basis

c. Interview suppliers and vendors to determine facts

d. Decide if investigation was necessary in the light of company policies and preliminary findings

e. Plan the interview

2. Adam's initial reaction when confronted:

Adam would try to deny the existence of such acts, especially when he is not sure that you have got some evidence against him.

3. Adam might try to cover his track when suspicion alert has been raised to his knowledge.  He might contact the vendors and suppliers involved to ensure that they did not disclose any unfavorable information to the investigator.  He might also engage in bluffing, that is trying to prove his innocence before the investigation proper.

4. I know this because I have dwelt with such reactions before.

Explanation:

In law, fraud is the deliberate misrepresentation of facts for the purpose of depriving someone of a valuable possession or enriching oneself.