2024 – In this module we focus on the concept of conversion which is the actual monetizing of the fraudulent activity

In this module we focus on the concept of conversion, which is the actual monetizing of the fraudulent activity of the perpetrator.  In this discussion you will outline how you would implement one of the tools that is used to identify conversion.

Your boss has presented you with a fraud case which has occurred at a manufacturing plant of a major auto supplier.  In this case there has been circumstantial evidence collected which indicates that the plant manager has been incorrectly booking revenues and costs to increase the performance level of the plant and thus, the bonus payout for himself and the remainder of the plant leadership team.

You have been asked to employ the net worth method to provide evidence to support these claims.  In order to complete this exercise you have been provided the financial statements of the facility for the past five years, along with access to base activity information (invoices, etc.) to support the financial statements.

How would you go about this investigation?  What key information would you request to support the analysis?  What specific steps would you take to identify the fraud?

Please remember to provide at least one external source to support your approach.

Half page discussion on topic needed