Specifically, the following critical elements must be addressed:
Development of Hypothesis
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- Using an analysis of the fraud triangle and potential red flags, what types of fraud could be occurring in the company?
- What preventive or detective controls are present or absent that would safeguard against fraud? Support your response.
- What is your fraud hypothesis? Why do you feel fraud is occurring at this company?
- Based on your hypothesis, what are appropriate ways to collect evidence without violating professional standards such as the American Institute of CPAs (AICPA) code of conduct?