Fraud Assignment for Feb 2012(2)

Fraud Assignment for Feb 2012(2) - , from Financial...

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Fraud Assignment 1. Skim the following three recent articles/reports on fraud. You do not need to read these carefully; the intent is simply to provide some background for our class discussion of the MCI fraud. Is There Still Fraud?, by the AICPA (2010) The Global Economic Crime Survey, by PWC (November, 2009) As Internal Audit Staffs Shrink, Will Fraud Rise?, from (December, 2009) 2. Carefully, read the following three articles which discuss the fraud at MCI. Note that the first two articles are written almost entirely from the perspective of Walter Pavlo, who committed the fraud, while the third article is written by Jim Wanserski, who detected the fraud. A couple of cautions: Do not expect their accounts to be consistent. Be prepared to explain what you believe to be factual , and why. Ring of Thieves , from Forbes (June 10, 2002) An Environment for Fraud , from Internal Auditor (April, 2004) By Any True Accounting, The Deed Was Fraud
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Unformatted text preview: , from Financial Executive (March, 2006) 3. Briefly (one paragraph) describe how the fraud committed by Walter Pavlo worked. Be specific how did the various entities and individuals work together to commit the fraud and the embezzlement? At the end of your summary: List at least five inconsistencies between the various accounts (Question #2). Viewing that list, what additional information (accounting data in particular, other business information) could confirm which account is actually factual. 4. Briefly list some of the factors that initially let Jim Wanserski to suspect, and then to believe that fraud was occurring. 5. What was the ultimate smoking gun the hard evidence that proved the existence of fraud? How was this evidence obtained? 6. What one question would you most like to ask Jim Wanserski when he is here? Moral dilemma?...
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