You Are Investigating a Fraud in Which You Suspect That

question 6

Multiple Choice

You are investigating a fraud in which you suspect that one of your suppliers from another state has been giving bribes and kickbacks to your purchasing agent in exchange for a lucrative, exclusive contract. Which of the following agencies/individuals would be the most helpful in investigating this fraud?

• A) The FBI because they have national jurisdiction and can investigate and prosecute violators from a different state.
• B) The state attorney general for the supplier's state because they are responsible for enforcing all state civil and criminal laws.
• C) Postal inspectors because the bribes and kickbacks were most likely made through the mail system; therefore, federal mail statutes apply.
• D) The IRS because your purchasing agent is not too bright and probably reported the bribes and kickbacks as income on his tax returns.

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Definitions:

Contingency Theory

A management theory that suggests the most appropriate form of organizational structure or managerial action depends on the specific situational variables.

Weber's Concept

Theories and principles developed by sociologist Max Weber, including authority types and the characteristics of bureaucracy.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, often within large organizations or governments.

Management Duties

The responsibilities held by individuals in managerial positions, including planning, organizing, leading, and controlling organizational resources to achieve specific goals.