Video Planet: A Teaching Case On The Detection Of Fraudulent Financial Reporting

Abstract

This paper presents a teaching case intended for use in an undergraduate auditing or fraud class.  In the case, readers encounter an audit client, Video Planet, Inc., which exhibits many of the symptoms of companies that have been found to engage in fraudulent financial reporting.  The case is intended to develop students’ skills at detecting and interpreting warning signs of fraudulent financial reporting.  Section One presents the facts of the case.  Section Two presents decision-guiding questions.  Section Three provides teaching notes.  Section Four provides a summary of the paper.