EagleBranch Homeowners' Association: A Case to Identify "Red Flags" for Fraud

• In Event: Teaching Cases I

Abstract

We present a case based on a real situation with a local homeowners’ association (HOA). Instructors teaching Fraud Examination and/or Auditing classes often use historical cases where the “answer” to whether or not fraud has been committed is known. This case is unique because the case is evolving at the present time. The purpose of the case is to get students to identify “red flags” for potential fraud in a “real life” situation for a volunteer-run organization. We provide feedback from one group of graduate students (n =19) who worked the case for extra credit. Their responses as to their enjoyment of and usefulness of the case were overwhelmingly positive (88% agreement level or better). We hope to have instructors who teach Fraud Examination and/or Auditing use the case in the Spring 2014 to further validate the case.

Authors

• Constance M. Lehmann, University of Houston-Clear Lake

• Cynthis Heagy, University of Houston - Clear Lake