If Lee had not been seen taking employees out in a limousine, she would have been caught by the audit of balances. Verification of claims through external sources could easily lead to the detection of fraud in this case. Furthermore, mailing addresses of three doctors were same which could have created the suspicion for the auditor. The investigation of these mailing addresses would lead to Martha’s husband’s address from where she could have easily be caught after further investigations.
The auditor should investigate the details of doctors to whom the claims were paid by the company. It could be done by obtaining the list of doctors and looking up their details in the directory of authorized medical practitioners. Sampling could be done of few doctor’s addresses where the auditor should go physically to confirm whether or not they are valid business addresses.
