A. Search the internet to gain a deeper understanding of a case of "fraud." You should have plenty to choose from, ranging from Enron/Arthur Andersen, VW emissions tampering, Wells Fargo sales tactics, WorldCom, etc. Although cases of fraud related to the recent pandemic relief funds are not exactly frauds that occur within a company, the concepts involved are similar and can be used for this DQ. I'm hoping for diverse types/cases of fraud, which should help the class to appreciate the many forms of fraud that can occur. Describe the circumstances that surrounded the fraud, including but not limited to:
1. Who was involved, financial impact, and consequences.
2. The detailed nature of how it was perpetrated (i.e. control breakdown, management override, collusion)
3. Were there control breakdowns of "entity-level controls" and/or "process-level controls"? Please support your argument.
4. What role, in any, the internal auditors and external auditors played. If no involvement, should or could the IA have detected this fraud? Why or why not?
B. Discuss whether you believe that only a small portion of the frauds that occur within a company is ever discovered. Back up your reasoning with facts, examples, or other arguments.
C. Make sure to critique at least one other student's posting in addition to your own.
