1. What might have been some of the indicators that the NECE manager/engineer was committing fraud? What type of information systems could have helped to detect the fraud? In September 2007, the Japan-based electronics company NEC announced that it could not complete the financial analysis it was required to file with the SEC (Securities and Exchange Commission). SEC filings are mandatory for every company listed on any U.S. stock exchange. The key reason NEC could not properly prepare its financial statements stemmed from at least two frauds that had been committed by NEC employees from 1999 through 2005. Weak internal controls allowed the frauds to continue for years.