The Scope and Limitations of the Fraud Examination

On October 5th, 2010, the fraud examination unit received an subsidization from the possessor of school regarding to the possibility of fraud disbursements occurred in his school. He hazard that someone is illegally and intentionally stealing money from his school. Based on his suspicion, a fraud examination was conducted by collecting information, reviewing & analyzing relevant records, and applying detective work methods. The objective of my examination was to determine the possibility of misappropriation of schools fund, identify the fraudulent schemes, and help the school to figure out who was nookie the fraud.I reviewed schools bank accounts, bumpbooks, and personnel files. After obtaining suitable documentation, I found that the school funds were intercepted and converted to Mr bobfloat Daniel, who is the supervisory program in school. He was authorized to control financial and the process of checks formulation and issuance. Since none of financial supervisor reviewed h is works, he defalcate checks and fraudulently affixes the signature of an authorized maker. His forged maker scheme was penalize through following steps Start scheme with 2 break down companies Prepare fraud checks and forge the signature of schools owner Deliver checks to the bank Fraud checks were payable to his shell companies and his account. He concealed his theft by using high activity accounts. Since tracking records on the high active accounts would not expose the fraud easily, he successfully embezzled approximately $400,000 from schools funds.I applied sleuthing methods to support my investigation as follows Tracking on the vendor expenditures it would ontogenesis compared to prior expenses. Detect on the process of checks preparation and issuance Bob Daniel was an important part in the entire process. Also, none of supervisor checked his works. Examine the personnel records a review of Bob Daniel showed that rationalization would be a major motivation for his t heft Obtaining apology he confessed his theft as the result of feeling guilty. In conclusion, this makeup reflects that Bob Daniel, the school financial supervisor, committed a check meddling to misappropriate approximately $400,000. A full review of internal controls should be conducted to detect and prevent more fraudulent schemes.