Question

Jim is a fraud examiner. He has been hired by Crytic Inc. to investigate a shortage of cash which management thinks is being caused by fraudulent activities. Jim could spend his time andmoney pursuing witnesses to the crime or collecting documents that would confirm fraud. As with most fraud examiners, Jim chooses to collect supporting documents instead of pursuing witnesses. Explain why most fraud examiners prefer documents over witnesses, and then describe elements of good document care.

Answer 1

Most fraud examiners prefer documents over witnesses because they provide concrete and reliable evidence. Good document care involves maintaining proper record-keeping practices and ensuring security to prevent tampering.

Step-by-step explanation:

Most fraud examiners prefer documents over witnesses because documents provide more concrete and reliable evidence. While witnesses can be influenced by personal biases and may not have accurate recollections, documents, such as financial records, receipts, and invoices, offer objective and verifiable information. For example, in Jim's case, collecting supporting documents will provide tangible evidence of fraudulent activities, helping to establish a solid case against the perpetrators.

Elements of good document care include maintaining proper record-keeping practices, ensuring documents are stored securely, and implementing measures to prevent tampering or alteration of documents. This can involve organizing documents in a systematic manner, using folders or electronic databases, backing up data regularly, and establishing access controls to limit the number of people who can handle or modify documents.