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:

Fraudulent activity:

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:


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