As the director of the internal auditing and fraud investigation departments for a large retail company that buys and sells large volumes of products, you have received an anonymous tip from a confidential employee in one of the high-tech warehouses

As the director of the internal auditing and fraud investigation departments for a large retail company that buys and sells large volumes of products, you have received an anonymous tip from a confidential employee in one of the high-tech warehouses. The confidential employee noted that there was a major embezzlement taking place in one of the divisions. Members of the internal audit department had completed a routine review of the internal control of that division the previous year, and they found that the control system was properly designed and operating effectively. Only minor recommendations were made, and the next review is due 3 years later.

The confidential employee noted the erratic behavior and lavish lifestyle of the warehouse controller and stated that the controller has been over-riding existing controls, which would prevent any audit from being able to detect the embezzlement. The warehouse controller is well-respected and highly trusted by the chief executive officer (CEO) and the chief financial officer (CFO), and their families are involved in the same civic organizations. Investigating the plant controller could cause considerable disruption in the company and the personal lives of the employees.

Answer 3 of the items below in 2–4 pages. As you answer them, you must provide support or evidence that will enhance and empirically prove your answers. Academic criminal justice articles or real-life criminal justice findings that are not found in journals or other academic sources must be used in supporting your answers. Please use the American Psychological Association (APA) style for all cited sources, including your resource page.

· Given the situation, discuss some of the options that the company has for handling this situation. 

· Assuming you decide to investigate these allegations, describe the investigation steps.

· In preparation for the interviews, note the order of the witnesses who would be interviewed and how you would plan, conduct, and document your interviews.

· Discuss how you would conduct an admission-seeking interview of the plant controller.

ANSWER

Given the situation, discuss some of the options that the company has for handling this situation.

1. Ignore the tip: One option for the company is to ignore the tip and not investigate the situation further. However, this would not be a responsible approach as it would not ensure the protection of the company’s assets and could expose the company to legal and reputational risks.
2. Internal investigation: The company can conduct an internal investigation to verify the allegations made by the confidential employee. The advantage of an internal investigation is that it is relatively cost-effective and can be completed quickly. However, there may be limitations in the internal investigation’s ability to uncover the truth as there may be a potential conflict of interest.
3. External investigation: The company can engage an external firm to conduct the investigation. This option provides the advantage of impartiality and objectivity, which can improve the credibility of the findings. However, this option may be more expensive and time-consuming compared to an internal investigation.
4. Report to the authorities: The company can report the allegations to the relevant authorities for them to investigate. This option provides the advantage of impartiality and objectivity, but it also has the risk of exposing the company to legal and reputational risks.

Assuming you decide to investigate these allegations, describe the investigation steps.

1. Gathering information: The first step is to gather information about the allegations. This can include reviewing relevant documents, interviewing witnesses, and conducting a physical examination of the warehouse.
2. Evidence collection: Collecting evidence is crucial in the investigation process. This may involve collecting documents, interviewing witnesses, and conducting a physical examination of the warehouse.
3. Interviews: Conducting interviews with key witnesses, including the warehouse controller and other employees who may have relevant information, is crucial in uncovering the truth.
4. Analysis of evidence: Analyze all the evidence collected to determine if there is sufficient evidence to support the allegations of embezzlement.
5. Preparation of report: Prepare a comprehensive report of the findings, including the evidence collected, the analysis of the evidence, and the conclusion.

In preparation for the interviews, note the order of the witnesses who would be interviewed and how you would plan, conduct, and document your interviews.

1. Order of interviews: The order of the interviews should be planned based on the relevance of the witness to the investigation. For example, the warehouse controller should be interviewed first, followed by other employees who may have relevant information.
2. Planning: Plan the interviews by identifying the specific questions to be asked, the objective of the interview, and the role of the interviewer.
3. Conducting the interviews: Conduct the interviews in a professional and impartial manner, ensuring that the witnesses are comfortable and that the information obtained is accurate and complete.
4. Documentation: Document the interviews by taking notes of the answers given by the witnesses and any other relevant information. This documentation should be kept confidential and should be used to support the findings of the investigation.

Discuss how you would conduct an admission-seeking interview of the plant controller.

1. Preparation: Before conducting the admission-seeking interview, research the background of the plant controller and familiarize yourself with the relevant information. Prepare a list of questions to ask, focusing on the evidence that suggests embezzlement.
2. Setting: Ensure that the interview takes place in a private, comfortable, and non-threatening environment to increase the chances of obtaining a truthful admission.
3. Approach: Approach the interview in a non-confrontational manner and establish rapport with the plant controller. Start with open-ended questions and then move on