Accounting Fraud and Problem-based Learning Case

ISSUES IN ACCOUNTING EDUCATION Vol. 18, No. 2 May 2003 pp. 137à ±173 The Tallahassee BeanCounters: A Problem-Based Learning Case in Forensic Auditing Cindy Durtschi ABSTRACT: You are auditing the books of the Tallahassee BeanCounters (TBC), a minor league baseball team in Tallahassee, Florida. During your audit the teamà ­s owner, Franklin Kennedy, approaches you and offers an additional fee if you will quietly investigate the possibility of fraud within the firm. Mr. Kennedy reports that he received an anonymous tip and, based on that information, believes that someone within the firm could be perpetrating fraud. Your task is to use the information given here (the financial books and back-up documents) as a starting point for your†¦show more content†¦Heà ­s always out on promotional trips. He may be the president, but it is Ben Hill who really runs the place.à ® Terri Hughes (Assistant to the President): à ¬Terri guards Ackersà ­ office like the Centurion Guards. Ità ­s impossible to get hold of Ackers to ask the simplest question because Terri will nip your heels right out of the office.à ® Tucker Johnson (General Manager): à ¬Mr. Johnson is great. He used to play pro ball. The team loves him. He can be tough, but heà ­s good. Weà ­ve sent a lot of guys up to the majors. He doesnà ­t like the paperwork. He lets me do most of the ordering and stuff.à ® Ben Hill (Office Manager): à ¬Benà ­s a piece of work. He dresses only in suits and is always hitting on the 20-year-olds, even though heà ­s got to be 40. Got a bunch of ex-wives. The girls think heà ­s disgusting; maybe ità ­s the comb-over. Some people in the office complain that heà ­s à «all overà ­ their work, but he sure keeps the place running smoothly. Luckily, heà ­s healthy. I donà ­t know what would become of this place if he ever took a vacation. He changed our equipment vendor recently. The new rep and Ben seem tight. I think ità ­s a good change. Not only is the equipment always on time, but also the salesman, Charlie Thurgood, delivers it personally! Sure has kept Mr. Johnson off my back.à ® Michelle Shelton (A/P Clerk): à ¬Sheà ­s Tucker Johnsonà ­s niece. She works hard, but as soon as it is 5 P.M ., sheà ­s out at the dugout hanging around the guys. Sheà ­s cute andShow MoreRelatedKey Elements For Commit Fraud1673 Words   |  7 PagesElements There are five elements needed to commit fraud: (1) a false statement containing material fact, (2) the defendant possesses the knowledge that the statement is untrue, (3) the false statement’s intent is to deceive the intended victim, (4) the intended victim justifiably relies on the statement, and (5) the ending result is financial injuries to the intended victim. All false statements do not constitute for fraud; it needs to contain a material fact. 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