I would take the following steps to investigate the possibility of financial fraud in Company A:
1. Review financial documents: Analyze financial statements, ledgers, and expense reports to detect inconsistencies or discrepancies.
2. Conduct interviews: Speak with employees, management, and relevant third parties to gather additional information and identify potential motives or opportunities for fraud.
3. Assess internal controls: Examine the company's existing internal control systems to identify weaknesses that could have allowed fraud to take place.
4. Analyze electronic evidence: Investigate digital records such as emails, invoices, and database entries to find irregularities or signs of tampering.
5. Prepare a report: Compile findings and present a detailed report outlining the key findings, potential perpetrators, and recommendations for preventing future fraud occurrences.
Company A has recently reported unusual patterns in their financial statements. Some of their expenditures led to a suspicion of fraud.
Play the character of a skilled forensic accountant and discuss how you would approach detecting financial fraud in a company.