As discussed in the video introduction,accounting fraud in large public companies has produced its fair shareof major news headlines over the past 20 years. Even though laws likeSarbanes Oxley have been put in place to minimize the opportunity forfinancial fraud, the threat is still real in today’s corporateenvironment.
Imagine you have been hired to oversee the financial audit of amajor company in your city. During the audit, one of the company’semployees has disclosed a potential fraud situation involving anaccounting department supervisor.

In addition to alerting your own manager about the situation,which one of the following options below would you choose to performnext as you proceed with your investigation? Only choose one.

Option A: Gather additional information by interviewing other company employees.
Option B: Meet with other members of the management team todiscuss the company’s current internal controls for preventing fraud.

Why do you feel your choice would be most effective?
Discuss the reasoning for your selection.

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