An anonymous call came in to Thomas Toy Co’s fraud hotline claiming that Fred, the company’s accounts payable manager, had set up a phony company and was using it to rip off Thomas Toy Co. No other details were provided. As an internal auditor at Thomas Toy Co., you have been asked to look into the matter. Fred has been with Thomas Toy Co. for over ten years, and he has always been a highly regarded employee. He did recently make a few large purchases—including an engagement ring for his girlfriend and a new sports car—but rumor has it that
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