From Horses To Log Cabins A $9 Million Embezzlement Case: How Did The Owner Not Know?

Abstract

The recent economic recession has forced companies to tighten the reins on expenses and fraud is one expense that companies cannot afford. Fraud, however, is becoming a much larger problem for business. This actual fraud case by an employee at a privately held company details how a $9 million embezzlement fraud was committed and detected. This case highlights the identification of the fraud, analysis through the use of the fraud triangle and the weaknesses in the internal control of the organization. This case identifies auditing issues and fraud examination procedures.