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

• In Event: Teaching, Learning, and Curriculum 3

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, as well as the unique setting, make this case particularly useful as an active learning tool to increase student engagement in 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 Cressey 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

• Stacy Ann Mastrolia, Bucknell University

• Curtis M Nicholls, Bucknell University