Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 94

Collecting Evidence in a Fraud Examination. A fraud examiner was called into a business because of a suspicion of fraud. An assistant manager in a bookstore is taking books off the shelf, bringing them to the return book area, completing a customer return form, and pocketing the money. This is done late in the day when few other employees are in the store and are involved in closing activities that occupy them in other areas. Required:
a. What are the objectives of the fraud examiner in performing a fraud examination?
b. What evidence could the fraud examiner obtain that would help reach the objectives of the audit?
c. How should the fraud examiner handle the evidence obtained?