These suspicious activities or red flags are identifiable after examining the exhibits and reading the case:
From reading the case and evaluating the documents, the following are the potential fraud issues and basic flowcharts explaining the potential frauds.
The fraud triangle contains three elements: pressure, opportunities, and rationalization. The main issues related to the case include:
There are internal control weaknesses, and the main ones appear below. Students could include other issues that they believe are internal control weaknesses:
The methods to mitigate or prevent the frauds include: