Second Chance Homeless Shelter: A Fraud Case for Introductory and Survey Courses in Accounting

• In Event: Case Studies - Fraud and Forensic Accounting

Abstract

This case presents a real embezzlement committed by a long-tenured employee of a local not-for-profit organization. The simple (non-complex) nature of this fraud makes this case particularly useful as an active learning tool for introductory level accounting courses where students are likely to have only a minimal understanding of accounting and internal controls. The details of this fraud should also make apparent to introductory accounting students the importance of internal controls both as a deterrent and as an early detector of fraud. We use the Cressy fraud triangle (Cressey 1973) as a structure to help students understand and evaluate this fraud. We believe completing this case will give students a better understanding of fraud in general, the Cressey fraud triangle, and internal controls and their use in preventing and detecting fraud.

Authors

• Curtis M Nicholls, Bucknell University

• Stacy Ann Mastrolia, Bucknell University