Question

Adam Jones, the purchasing manager for ACME Corporation, is under suspicion for committing fraud. His superiors believe he is accepting kickbacks and bribes from various vendors. As the company’s fraud expert, you are investigating this possible fraud and are preparing to interview Adam. You suspect that Adam will be defensive and possibly hostile when interviewed. 1. What investigation procedures should be completed before your admission-seeking interview with Adam? 2. If you find evidence that proves Adam is commit-ting fraud at ACME, what might his initial reaction be when he is confronted? What other emotions and/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:

• Review the company's policies and procedures
• Interview those who raised the suspicion to establish reasonable basis
• Interview suppliers and vendors to determine facts
• Decide if investigation was necessary in the light of company policies and preliminary findings
• Plan the interview

2. Adam's initial reaction when confronted:

Adam would be defensive and 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.