1. You have been told in confidence that Armen Inc’s Warehouse manager had disabled the warehouse surveillance system several months ago and had—along with several subordinates—been using a variety of plays to rip off company inventory. Although Armen was aware that its surveillance system had been down, it had previously attributed the problem to an equipment malfunction. You were also told that the warehouse manager had been colluding with one of Armen’s accounting personnel to manipulate the accounting records to conceal the theft. The seeming credibility of the whistleblower and the detail he provided were enough for Armen’s internal audit
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