Fraud Situations

A. Search the internet to gain a deeper understanding of a recent and major case of "fraud" within an organization (there have many, including Enron, WorldCom, Tyco, Healthsouth, etc, or you could find your own).

Describe the circumstances that surrounded the fraud, including but not limited to:

1. Who was involved, financial impact and consequences.

2. Detail nature of how it was perpetrated (i.e. control breakdown, mgmt override, collusion)

3. Were the 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

B. Discuss whether you believe that only a small portion of the frauds that occur within a company are ever discovered.

Back up your reasoning with facts, examples or other arguments.

Make sure to critique at least one other student's posting in addition to your own.