Explain relevant theories, concepts and frameworks of forensic accounting and evaluate major causes of corporate, bank and financial scams.
Learning outcome 1: Explain relevant theories, concepts and frameworks of forensic accounting and evaluate major causes of corporate, bank and financial scams.
Learning outcome 2: Investigate different fraudulent accounting practices and suggest measures for their deterrence.
CASE - Misplaced trust
Church leaders drain at least $673,000 from accounts.
Please read the below case and complete these tasks.
Task 1: Critically evaluate the fraud scheme used by the perpetrator.
Task 2: Perpetrators of fraud often display "red flags" or warning signs. Discuss common red flags being associated with the fraud perpetrator in the above case.
Task 3: Apply the fraud triangle to the above case and discuss various aspects related to each triangle in detail.
Task 4: Discuss the possible solutions of how to prevent such cases in future and also few lessons learned from the given case.
CASE - Misplaced trust
Church leaders drain at least $673,000 from accounts.
On Dec. 8, 2014, Onondaga County Court Judge Joseph E. Fahey spoke out at the sentencing of John Osborn when he tried to weasel out of a predetermined guilty plea. "I have to tell you, Mr. Osborn, I was born at night, but it wasn`t last night, okay. ..." Fahey said. "And what it tells me more than anything else is something that I think I already knew from looking at this scam and from looking at your history, is that you`re a conman and have been a conman for most of your adult life. You conned these poor people out here in the church. You conned other people in the past ... and now you are attempting to con me and the court system. And it isn`t going to happen this morning. Your day of reckoning has arrived. Upon your plea of guilty to grand larceny in the second degree, it is the sentence and judgment of the Court you be sentenced to a minimum of five years and maximum of 15 years."
The church.
The unnamed church is a small United Methodist congregation in upstate New York, which has served the community for 150 years and operates on an annual budget of less than $200,000. The members created - mainly through bequests in their estates - a series of endowments to fund a variety of needs within the church. Over the years, the endowment had grown to more than $600,000.
The players