Question
Anna Thomas committed a fraudulent act by making personal charges and cash withdrawals on Rusher Automotive's credit card. The accounting profession believes there are three
Anna Thomas committed a fraudulent act by making personal charges and cash withdrawals on Rusher Automotive's credit card. The accounting profession believes there are three conditions necessary for fraudulent behavior. (See the auditing statement AS 2401 Consideration of Fraud in a Financial Statement Audit (Links to an external site: https://pcaobus.org/Standards/Auditing/Pages/AS2401.aspx)).
a.List the three elements and discuss how each of these elements is present in Anna Thomas' fraud at Rusher Automotive.
b. Why did Jerry not discover fraudulent behavior from Anna at other clients, specifically Craftset Jewelry?
c. Why had other Max & Co. accountants, specifically Kate Conrad, not perpetuated fraud at Rusher prior to Anna's hiring?
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
