May 28th, 2015
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ACC 375 Week 4 DQsDQ1: What are the four steps involved in the fraud theory approach? Describe and give examples of each.The fraud theory uses four steps in sequence. The four steps are:1. Analyze available data2. Create a hypothesis3. Test the hypothesis4. Refine and amend the hypothesisIn order to understand the steps, I will explain each. First analyzing available data is all the data that could be involved in the fraud. An example is all the records of vendors with the company. If one vendor is receiving more orders than other vendors that deal in the same supplies this could indicate fraud.Second is creating hypothesis. What is happening and what are the affects. If one vendor is receiving the main orders for the company is the reason they are working with someone in the company so they both get money. The manager or purchasing clerk getting kickbacks and the vendor bein

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