Three Mini Fraud Cases: Revenue Recognition, Payoffs and Embezzlement

• In Event: Teaching Cases III

Abstract

Case 1, Australian Based Elders Revenue Recognition Problems with Sheep and Cattle, requires students to learn about a misstatement of the valuation of sheep and cattle, on the financial statements on an Australian company. Students will be asked to research the reporting issue and suggest controls that would have prevented the misstatement. Case 2, Diamond Foods Payments to Nut Growers, focuses students on a well-known company in the snack foods industry. Their intense corporate culture and lax ethical oversight resulted in the company pursuing questionable behavior and activities that resulted in multiple fraud allegations related to the improper recording of payments to nut suppliers for product purchased. Case 3, Dixon City Embezzlement: the Rita Crundwell Story, spanned a period of 22 years. The perpetrator was arrested in April of 2012. Students will be required to answer several questions regarding the perpetrator Rita Crundwell and the frauds she committed.

Authors

• Priscilla A Burnaby, Bentley University

• Susan Hass, Simmons College

• Donna McConville, Bentley University