AN AUDIT WOULD ANSWER A LOT OF
QUESTIONS
There has
been much discussion about a UCO FORENSIC AUDIT. First, the Grand Poohbah says yes, okay, -
then reneges and says no, - then yes, then no.
The man is paranoid to be sure.
It would be
done by three Villagers, two whom are CPA’s and the third a former UCO
treasurer for a number of years. And, it
wouldn’t cost UCO, or anyone in the Village, a single penny.
Just what is
the Poohbah afraid of? Well, he could
very well be afraid of 5.3 million dollars that was carelessly and negligently
spent. And now he’s gathering monies to
do paving repair work, - like thousands of dollars that he’d like to draw down
from a “General Fund” and whisk away the responsibility that he and his
backroom button pusher surely have.
So, just
what is a FORENSIC AUDIT? It is an audit
whose purpose is to use accounting procedures to collect evidence for the
prosecution or investigation of financial crimes such as theft or fraud. Forensic Audits may be conducted to determine
wrongdoing occurred, or to gather materials for the case against an alleged
criminal.
To the Grand
Poohbah, it would be devastation. He and
his button pusher would need to tell the truth, the whole truth and nothing but
the truth.
Perhaps more
appropriate would be a FRAUD AUDIT.
1. A FRAUD AUDIT is a meticulous review
of financial documents, while one searches for the point where the numbers
and/or financial statements do not mesh, and it is a compliance tool that is
used by company management to meet its internal and regulatory obligation to
guard against illegal activity. The
standard types of fraud include recording fake transactions, stealing, embezzling,
bribery, extortion and kickbacks.
2. When the doctoring of financial
records for purposes of moving funds from certain dedicated categories to other
ledger categories without proper identification or authorization, in order to
establish an illicit manipulation of funds becomes evident, this action
elevates to a FRAUD AUDIT.
All of the
evidence is there, - it just needs to surface.
The auditors take the broad step and actually elevate the
characteristics of a transaction to determine if red flags exist that would
indicate signs of certain types of fraud that auditors are trained to identify.
Hey, Poohbah,
show the people that you’re not afraid, but be sure you get some advice from
your button-pusher.
EDUARDO
You mention that one of the types of fraud is "kickbacks." If you take apart the entire paving job piece by piece, you'll probably find kickbacks galore. Right off the top, I can think of 5 individual who would take money or things that have monetary value.
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