Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 39

You serve on the board of directors of a multinational manufacturing company. You have just received a whistleblower complaint that one of the managers in another country, where a large production facility is located, has been understating manufacturing costs to make his production results look better than other facilities. Answer the following questions:
1. What should you do with this information
2. As a board member, can you immediately involve the top management of the corporation in your actions, whatever they may be
3. What are the risks to the company if this fraud is material (significant) to the company's financial statements