For Milestone Three, you will submit your hypothesis development and investigation plan for your company. Consider potential frauds and perpetrators in your company, how the fraud could be investigated, regulatory issues, and any other fraud risk inquiries required. Once you have developed your fraud hypothesis, propose an investigation plan. Describe the process of how you would investigate the potential fraud and all of the factors that must be considered for carrying out the investigation.
Prompt: Develop a fraud hypothesis for your [Satyam Computer] case and a plan for investigating the fraud. Specifically, the following critical elements must be addressed:
III. Hypothesis Development
a) What frauds could occur in the environment you researched? How are these related to the specific company, the industry, and the economic
conditions as a whole?
b) Of all of the employees mentioned, who would have incentives or opportunities to commit fraud? Why?
c) Which of the employees who had the incentive or opportunity to commit fraud is in a position to cause the financial anomalies found? Explain
why.
IV. Investigation Planning
a) Describe the process of how could you investigate the potential fraud and the appropriate steps to complete the process.
b) What documents might you need? Who might you need to speak with regarding the fraud? Support your responses.
c) Illustrate how regulatory issues such as SarbanesOxley or SAS No. 99 would impact the investigation.
d) What other fraud risk inquiries are needed to investigate the suspected fraud? What steps would need to be taken to address these risk
inquiries?
