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July 18, 2023

What could the CFO do to investigate the potential problems in the procurement department of Bucket Corp.?

There once was a corporation from Nantucket, Its controls leaked like holes in a bucket. Smelling trouble with the buyer, And with the supplier,

They determined to fix it or chuck it.

This limerick accurately depicts Bucket Corp., which manufactures wood furniture. Bucket has enjoyed several years of good profits but has recently seen some alarming trends in its bottom line. Although not drastic, Bucket’s profits first stagnated and are now beginning to decline. After some cost analysis and investigation of financial records, the company has determined that the problem may be coming from the procurement division of operations. On the

following page is a small random sample of invoices from various vendors:

1. What could the CFO do to investigate the potential problems in the procurement department of Bucket Corp.?

2. Doyouthinkitispossiblethereisfraudinvolved?Why?

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