,FOR2607 Assignment 2 (COMPLETE ANSWERS) Semester 1 2025
(629888) - DUE 21 April 2025;100% CORRECT AND TRUSTED
SOLUTIONS
Study below case study and answer the questions.
Case study
Fraud and corruption in the Public Service will always be problematic,
counter-productive, and devastating, especially in young democracies
and developing countries. Although government introduced and
continues to add various forms of controls, the persistence of criminals
continuously challenges these controls for self-enrichment. To prevent
and detect fraud and corruption in the Public Service, lifestyle audits are
a critical and legitimate management tool and forms part of a
department’s system of risk management. Fraud and corruption are
usually committed by means of “off book” transactions, typically the
acceptance of a bribe, or by manipulating records, especially those
involving tenders and procurement. These “”off book” transactions are
very difficult to detect and dishonestly inclined professionals are able to
conceal their fraudulent actions with disturbing alacrity and ease,
particular in work environments with weak controls or limited
segregation of duty. Sometimes the only clue to these illicit activities is a
sudden unexplained change in an employee’s lifestyle. (Guidelines of
conduct lifestyle audit (2001)
Question 1
Explain in your own words, what is the “Financial investigation.”
Please support your answer with three sources.
(05)
Definition and Explanation of Financial Investigation
A financial investigation is a systematic process of gathering,
analyzing, and interpreting financial data to uncover illicit
financial activity, trace the flow of funds, and establish the truth
behind suspicious or fraudulent transactions.
, It is primarily used in cases where fraud, corruption,
embezzlement, money laundering, and other white-collar
crimes are suspected. The aim of a financial investigation is to
follow the money trail to identify the origin, movement, and
final use of funds, and to build an evidential foundation that can
support legal or disciplinary action.
This process involves examining bank records, accounting
books, asset registers, tax filings, procurement documents,
invoices, contracts, and other financial records to detect
inconsistencies, unusual patterns, or unexplained wealth. For
example, in a public service context where lifestyle audits are
conducted, a financial investigation might be initiated when an
employee’s sudden acquisition of luxury items or property is not
justified by their known income.
The financial investigation process is a key component of risk
management in organisations, especially in public sector
institutions where there is a high risk of bribery and
corruption due to the control of procurement and tender
processes. It also supports lifestyle audits by supplying hard
financial evidence to justify further actions, such as disciplinary
hearings, criminal prosecutions, or asset forfeiture.
In developing countries and young democracies like South
Africa, financial investigations are especially important due to
weak institutional controls, poor segregation of duties, and a
lack of transparency, which make it easier for officials to
manipulate systems and hide fraud. As such, financial
investigations serve both preventative and detective functions.
(629888) - DUE 21 April 2025;100% CORRECT AND TRUSTED
SOLUTIONS
Study below case study and answer the questions.
Case study
Fraud and corruption in the Public Service will always be problematic,
counter-productive, and devastating, especially in young democracies
and developing countries. Although government introduced and
continues to add various forms of controls, the persistence of criminals
continuously challenges these controls for self-enrichment. To prevent
and detect fraud and corruption in the Public Service, lifestyle audits are
a critical and legitimate management tool and forms part of a
department’s system of risk management. Fraud and corruption are
usually committed by means of “off book” transactions, typically the
acceptance of a bribe, or by manipulating records, especially those
involving tenders and procurement. These “”off book” transactions are
very difficult to detect and dishonestly inclined professionals are able to
conceal their fraudulent actions with disturbing alacrity and ease,
particular in work environments with weak controls or limited
segregation of duty. Sometimes the only clue to these illicit activities is a
sudden unexplained change in an employee’s lifestyle. (Guidelines of
conduct lifestyle audit (2001)
Question 1
Explain in your own words, what is the “Financial investigation.”
Please support your answer with three sources.
(05)
Definition and Explanation of Financial Investigation
A financial investigation is a systematic process of gathering,
analyzing, and interpreting financial data to uncover illicit
financial activity, trace the flow of funds, and establish the truth
behind suspicious or fraudulent transactions.
, It is primarily used in cases where fraud, corruption,
embezzlement, money laundering, and other white-collar
crimes are suspected. The aim of a financial investigation is to
follow the money trail to identify the origin, movement, and
final use of funds, and to build an evidential foundation that can
support legal or disciplinary action.
This process involves examining bank records, accounting
books, asset registers, tax filings, procurement documents,
invoices, contracts, and other financial records to detect
inconsistencies, unusual patterns, or unexplained wealth. For
example, in a public service context where lifestyle audits are
conducted, a financial investigation might be initiated when an
employee’s sudden acquisition of luxury items or property is not
justified by their known income.
The financial investigation process is a key component of risk
management in organisations, especially in public sector
institutions where there is a high risk of bribery and
corruption due to the control of procurement and tender
processes. It also supports lifestyle audits by supplying hard
financial evidence to justify further actions, such as disciplinary
hearings, criminal prosecutions, or asset forfeiture.
In developing countries and young democracies like South
Africa, financial investigations are especially important due to
weak institutional controls, poor segregation of duties, and a
lack of transparency, which make it easier for officials to
manipulate systems and hide fraud. As such, financial
investigations serve both preventative and detective functions.
