This nonfictional case of inventory fraud in a university setting exposes students to fraud detection and investigation. These skills are becoming increasingly important for auditors, as evidenced by the alarming rate of fraud. The accounting profession has acknowledged the seriousness of this issue with the issuance of SAS No. 82, Consideration of Fraud in a Financial Statement Audit, developed in part to improve detection of frauds by auditors. The case raises many of the fraud‐related issues faced by accountants: recognizing red flags indicative of fraud; the importance of a good system of internal controls; the profile of the typical fraud perpetrator; the fine line auditors walk when investigating a fraud; the need to develop an audit team with the appropriate level of expertise which may require members from a variety of disciplines (e.g., investigative, legal and forensic areas); and the difficulty of obtaining sufficient evidence to prosecute and convict perpetrators.
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Research Article| February 01 1999
Fraud Detection and Investigation: Microcomputer Consulting Services
Bonita K. Peterson, Assistant Professor ;
Issues in Accounting Education (1999) 14 (1): 99–115.
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Bonita K. Peterson, Thomas H. Gibson; Fraud Detection and Investigation: Microcomputer Consulting Services. Issues in Accounting Education 1 February 1999; 14 (1): 99–115. doi: https://doi.org/10.2308/iace.1918.104.22.168
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