You are responsible for conducting fraud investigations. The owner of a local hardware store, John Brooks, comes to your office/station to describe what he thinks is his manager stealing funds from his store.
Mr. Brooks tells you during your meeting that he has been the sole owner of his hardware store since he bought it approximately ten years ago.
Mr. Brooks tells you that, over the past several months, he has been noticing that the store’s operating funds (checking account) has been lower than expected, making it hard to pay suppliers and cover payroll. Mr. Brooks tells you that store sales have been very strong and that there have been no decreases in customers or sales over the past several months.
Mr. Brooks tells you he personally closes the register each night and counts the cash. Mr. Brooks tells you he also reconciles the sales each night and puts the money into a safe in his office until the next day to make the bank deposit.
Mr. Brooks tells you that his manager, Ken Joy, has been working at the store for three years. Mr. Brooks tells you he doesn’t like to leave the store during business hours and that one of Mr. Joy’s responsibilities is to bring the daily deposit for the store to the local bank branch, located about two blocks north on Main Street.
Mr. Brooks tells you he suspects that Mr. Joy is taking money out of the bank deposits, stealing the funds, and depositing the difference at the bank.
Mr. Brooks tells you Mr. Joy still works at the store and is not aware that he suspects Mr. Joy is stealing funds. Mr. Brooks also tells you Mr. Joy is not aware that he is talking with you about this matter.
Mr. Brooks tells you his goal is to determine if Mr. Joy has been stealing from his store’s deposits, and if so, terminate him and discuss other resolution options.
Given what Mr. Brooks identified, asking for your assistance as a fraud investigator:
1. Create an outline of the procedures you would perform in the order in which you would perform each procedure.
2. For each procedure you identified, provide a brief description identifying what you expect to accomplish with the procedure and why you put the procedure in the order you did.
3. Identify the information you would need to collect in this case to support the procedures that you identified you would perform.