To: Joe Campos, VP of Sales

From: Kate Chaplain, Senior Sales Associate

Date: April 5, 2013
Subject: Quarterly Review
Mr. Campos,
Ive attached my quarterly review report to this email, but I also wanted to quickly discuss the
trends Ive noticed in our sales data over the past few months.
Weve sold over 10,000 new memberships over the past quarter, which is a 22% increase from
Q4 of last year. Our data analysis shows that this upswing corresponds with the creation of
company pages on various social media sites, including Facebook and Twitter, which allows
more people to connect with us virtually. In fact, over half of our new memberships were
purchased from links that were posted on our Facebook and Twitter profiles.
Weve also had an 82% renewal rate in memberships that were set to expire in Q1. This is 16%
higher than our renewal rate in Q4, which suggests that our new programhaving sales
associates contact members directly about renewing their membershipsis working even better
than we had expected.
Unfortunately, we havent seen the same rapid growth in the purchase of family memberships.
While the number of FMs has increased by 2% over last quarters numbers, I believe we can get
that number even higher. Ive listed some suggestions in my report, but I would also like to add it
to the agenda for our quarterly review meeting later this week.
Please let me know if you have any questions.
Best,
Kate Chaplain
Senior Sales Associate
Body Rock Fitness

Findings
Every investigation results in some type of finding or conclusion.
How these are communicated will vary for each investigation. In
some cases, a formal report will be required; in others, a verbal
report or informal memo summarizing the findings for the file
will be all that is needed. Based on the strategy, objectives, and
goals of the investigation, there may even be a reason for not
writing a report.
Every report, regardless of form or purpose, should be written
in such a way that it stands on its own. The report should
also include at a minimum the following four sections:
1. Purpose of the investigation
2. Procedures performed
3. Results of those procedures
4. Conclusion
In writing a report, one must keep the audience in mind.
Identifying the parties who will be reading and relying on the
report, along with their level of financial knowledge, experience,
and sophistication, will determine how technical the
report is written. It is always better to minimize technical issues
and accounting jargon and to write factually in plain English.
When technical language cannot be avoided, do not assume the
reader has sufficient knowledge of the subject to understand the
186
Conducting Fraud Investigations: A Practical Approach
references; include a paragraph explaining each term or issue.
It may also be beneficial to use an analogy.
Consider the tense and person when writing, and keep these
constant. A report that changes back and forth from past tense
to present tense to past tense makes it harder for the reader to
follow.
Depending on the purpose of your report, consider writing
it in a matter-of-fact manner. For example, consider procedures
performed to test compliance with a particular control or procedure.
At the conclusion, the investigator or auditor would write
a summary of the work performed along with any findings. It
could be worded as follows:
I obtained and reviewed a copy of the internal control
documentation regarding approving and recording general
journal entries. I noted that the procedures over general journal
entries required the completion and approval of a form,
along with supporting information for each general journal
entry. I next obtained a copy of the detailed general ledger
report covering the month of December. I identified thirty

(30) general journal entries posted to the general ledger in

the month of December. I obtained access to the general journal
entry forms and supporting details. I traced each of the
thirty (30) general journal entries posted to a completed and
approved formalong with support. I identified five (5) general
journal entries posted to the general ledger in December with
no corresponding completed and approved form provided. I
identified two (2) general journal entries posted to the general
ledger in December for which the corresponding approved
form did not contain the required supporting information.
I concluded that compliance with the required procedures
over approving and recording general journal entries was
limited to twenty-three (23) out of thirty (30) posted entries.
187
Fraud 101
Use of the Findings
Depending on the type and purpose of the investigation, what
happens next will depend on the findings. In testing for compliance
with controls and procedures, for example, any instances
of noncompliance will likely lead to recommendations, which
could include consequences for not complying with the expectations.
Remember the audience and the purpose when writing your
report. Avoid technical terms, and when they cant be avoided,
define them within your report. The less technical your report,
the easier it will be for non-accountant readers to follow. Early
in my career, I heard a speaker talk at a seminar about report
writing. He stated that he wrote his reports from the perspective
of a jury that might have no accounting background or experience,
and on average a sixth-grade education. While that may
not actually be the case, I have followed that guidance in writing
my reports so that anyone can follow the actions I took, the
findings I reached, and my conclusions.
Note
1. Garner, Bryan A. (ed.-in-chief), Blacks Law Dictionary

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