Financial Statement Fraud
Read the following articles about two cases of financial statement fraud:
- “Anatomy of a Financial Fraud”
- “Dell Fined $100M for Accounting Fraud that Misled Investors”
Choose one case and answer the following questions:
- What type of financial statement fraud was perpetrated?
- What were the red flags (if any) in the case?
- How did the scheme come to light?
- What steps would you implement to prevent this type of fraud in the future? Did the external auditor in each case detect fraud? Why?
- How does this case differ from the other?
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