by Thomas Buckhoff, Ph.D., CPA/CFF, CFE and Bonita Peterson Kramer, Ph.D., CPA, CMA, CIA
Welcome to Cardinal Wholesalers, Inc.: A Fraud Examination/Auditing Case Simulation!
Pedagogical research indicates that the best way to learn is by doing. This case simulation
provides you with the opportunity to learn basic fraud examination/auditing principles through
hands-on active participation. A brief description of the case is as follows:
This case simulation replicates the actual investigative steps that were followed in uncovering a
$1.75 million fraud scheme. The case background is based on an actual cash disbursements
fraud investigated by my partner, Tom OâHalloran of Forensic Solutions, LLC, and me. Since
the fraud involves an on-book scheme, you can uncover the fraud by examining accounting
records and underlying source documents. The vendor database contains 1,000 vendors making
it too time consuming and inefficient to examine all the source documents underlying vendor
payments. Using the red flags most common to fictitious vendor schemes, you must first use
Excelâs AutoFilter function to narrow down the vendor list to the six most âsuspiciousâ vendors.
Using a password derived from the names of the six vendors, you will then access a PDF file
containing three invoices from each of the six vendors to determine the most suspicious vendor.
Next, using the Taxpayer ID number as the password, you will examine the most suspicious
vendorâs recent bank statement along with cancelled checks to determine whether the fraud is a
fictitious vendor scheme or a pass-through scheme. Finally, you will write a brief report
summarizing the evidence and estimating the fraud loss suffered as a result of the fraud scheme
you uncovered. The report should also include specific recommendations for preventing this
type of fraud in the future. This case simulation increases competencies in the following areas:
Problem solving, critical thinking, and document examination skills
Computer skills, especially the ability to query a vendor database on Excel
Technical skills relating to the detection, investigation, and prevention of fraud
Research and professional writing skills
Sample Solution
way. In this soliloquy, he starts off by saying he wishes his âsullied flesh would melt, Thaw, and resolve itself into a dewâ (I.ii.129-130) and he is upset that God has made a law against suicide. Ever since King Hamlet has passed Hamlet finds no purpose to life anymore. Hamlet is upset that his father has been dead for barely two months and it seems like people have already forgotten about him, even though he thinks his father was far superior to King Claudius. Third, families are what form a childâs behavior into their future. Hamlet felt lost hope with life, love, and women at a young age. His thinking was that he has nothing to look forward to in life anymore. Hamlet starts to show his anger towards his mother Gertrude because even though she loved King Hamlet she remarried months after his death. Hamlet refers to his mother very harshly saying even an animal would have Patel 2 mourned their mate longer than she had. The anger continues to build because she even remarried into an incestuous marriage, which was extremely frowned upon in Elizabethan times. Additionally, this is when Hamlet starts to criticize all women be- cause of the actions of his mother. Hamlet frustration rises because he knows he can- not show his emotions out loud and he has to keep them bottled up. The soliloquy ends with Hamlet talking about his motherâs incestuous actions mentioning how no good can come from all of this. Hamletâs famous line, âFrailty, thy name is womanâ (I.ii.146) shows that Gertrudeâs insensitive and unfaithful actions have com- pletely shattered his opinion of women, which negatively influences his relationship with Ophelia later in the play.>
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way. In this soliloquy, he starts off by saying he wishes his âsullied flesh would melt, Thaw, and resolve itself into a dewâ (I.ii.129-130) and he is upset that God has made a law against suicide. Ever since King Hamlet has passed Hamlet finds no purpose to life anymore. Hamlet is upset that his father has been dead for barely two months and it seems like people have already forgotten about him, even though he thinks his father was far superior to King Claudius. Third, families are what form a childâs behavior into their future. Hamlet felt lost hope with life, love, and women at a young age. His thinking was that he has nothing to look forward to in life anymore. Hamlet starts to show his anger towards his mother Gertrude because even though she loved King Hamlet she remarried months after his death. Hamlet refers to his mother very harshly saying even an animal would have Patel 2 mourned their mate longer than she had. The anger continues to build because she even remarried into an incestuous marriage, which was extremely frowned upon in Elizabethan times. Additionally, this is when Hamlet starts to criticize all women be- cause of the actions of his mother. Hamlet frustration rises because he knows he can- not show his emotions out loud and he has to keep them bottled up. The soliloquy ends with Hamlet talking about his motherâs incestuous actions mentioning how no good can come from all of this. Hamletâs famous line, âFrailty, thy name is womanâ (I.ii.146) shows that Gertrudeâs insensitive and unfaithful actions have com- pletely shattered his opinion of women, which negatively influences his relationship with Ophelia later in the play.>
