Case 1:

You are having lunch with a graduate student whose specialization is different from yours. During the course of the conversation, you tell your friend about the fraud examination class you are taking. After you explain the devastating impact of fraud, in the course of the conversation, you must address the following questions:

What is the difference between fraud and error?

With all the advances in technology, why is fraud a growing problem?

Case 2:

"But I intended to pay it all back, I really did", Joseph Swankie said as he talked to his manager. How did I ever get into this situation, he thought. Two years ago, Joe received the promotion for which he had been working so hard. In addition, Joe's new manager told him that Joe had a very promising future at the company. Joe and his wife Jane quickly purchased a new home. Not long after, Joe and Jane had their fourth child, and life was great. After having their fourth child, Jane quit work to spend time with her kids.

Suddenly, things started to turn upside down. The economy took a downturn, which had a negative impact on Joe's company. His pay, which was based on commission, was reduced nearly 50 percent. Joe still worked hard but thought he should be paid more. Unable to find another job, Joe resentfully decided he would stay with the company even with lower pay.

Not long after he started receiving lower commissions, Joe noticed that the controls over the petty cash fund were not very strong. The records were not reviewed very often, and small shortages were usually written off. One week, Joe took $50. When questioned by his wife, Joe said he found a few odd jobs after work. Joe continued this habit of taking small amounts for a couple of weeks. After realizing that no one had noticed the shortage, he stated to take up to $100 a week.

One day, another employee noticed Joe taking some cash from the fund and putting it in his wallet. When questioned, he simply stated that it was a reimbursement the company owed him for supplies. An investigation began, and Joe's fraud was discovered.

1. Identify the opportunities, pressures, and rationalizations that led Joe to commit this fraud.
2. What simple procedures could the company have implemented to prevent the fraud from occurring?

Case 3:

Umdrum, Inc. manufactures cars. The 2018 income statement is as follows:

Umdrum Inc.
Income Statement for the Year Ended
December 31, 2018
Sales Revenue	$20,000
Cost of Goods Sold	10,000
Gross Margin	10,000
Expenses	8,000
Net Income	$2,000

Wichita, Inc. is a car rental agency. The 2018 income statement is as follows:

Wichita, Inc.
Income Statement for the Year Ended
December 31, 2018
Sales Revenue	$20,000
Expense	15,000
Net Income	$5,000

During 2018, both Umdrum and Wichita incurred a $1,000 fraud loss.

1. How much additional revenue must each company generate to recover the losses from the fraud? (Hint: calculate profit margin for each company to determine how much revenue must be generated).
2. Why are these amounts different?
3. Which company will probably have to generate less revenue to recover the losses? Explain why.

please provide detailed explanation of each cases including references.