MOUNT KENYA UNIVERSITY

ASSIGNMENT 1
BSJ 4233: FORENSIC ACCOUNTING

1. What clues caused Jane to suspect that fraud was involved?

There were several clues that caused Jane to suspect that something was not right:

a. There were few Accounts payable checks which lacked complete endorsements by payee.

b. The checks were handwritten and were not electronic checks like most companies send out to
their vendors. The handwriting was the same on all five checks, and the checks were pushed
through as rush payments.

c. All the five checks were cashed at the same convenience store which was less than five miles
from the home office.

d. No supporting documents were found for the payments.

e. Other payments made to the same payee were identified and retrieved the paid, and the
endorsement did not look like the same endorsement on the suspicious checks

2. Why is it important for fraud examiners to follow up on even the smallest

inconsistencies?
It is significant for the fraud examiner to follow up even the small consistencies since if Gus did not
look at the written comments provided by J, H could be still cashing checks that does not belong to
him. If 90checks cashed has not been identified at the convenience store, he would have continued
and had done more times creating to the company. On the other hand, to know the department
where the fraud had happened and besides that to comprehend what all instruments have been used
to do the fraud so that the people behind the fraud can be identified and method adopted by them be
traced.

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 3. In an attempt to identify possible suspects, the auditors researched the personal files of
every employee in the department. What things might they have been looking for to
help them identify possible suspects?
Since there was some endorsement made, the auditor would have tried to know which employees
are involved in the fraud and how much personal gain the employee might have gained from the
fraud. The reason of researching the individual files for each employee is to identify the financial
issues, demographics, criminal record, vacations availed by employees, and signature of the payees
to match up with signatures on the checks