Editing Adobe Acrobat Voice Extra Credit Option No 2: The Great As the subterfuge unraveled, McNutt's forensic accountants found that Sandy Jenkins had managed to skim over $17 million from the company over the course of Texas Fruitcake Caper ten years, using an unsophisticated scheme that could have been prevented by a few simple internal control procedures, such as the owner simply looking at the You may not think much of fruitcakes, but in Corsicana, Texas, at the Collin Street accounting records closely.[ij Bakery, the venerable fruitcake is big business. The bakery was founded in 1896 by August Wiederman, an immigrant from Questions for Discussion Wiesbaden, Germany. In 1914 the Ringling Brothers Circus passed through town and 1. What kinds of internal controls could have prevented this from happening? ordered dozens of fruitcakes as Christmas gifts to be mailed to friends and family 2. As a business owner, in addition to internal controls, what kinds of things across the globe. A trio of investors, including Lee William McNutt, Sr. purchased the could you do to catch this sooner? bakery in 1946 from Wiederman and expanded the mail-order business to include m' Why do you think this went on for so long and ended up costing the business overseas clients. By the time Lee William McNutt, Jr. took over, the bakery was so much? accepting orders by mail, phone, fax, and online. He also pioneered the use of a Provide an example of something like this that you found in your local news? computerized database and fine-tuned shipping methods to make delivery of the What other kinds of fraud and theft do you think employees might try , and cakes more efficient. The third-generation CEO, Bob McNutt, has continued the how would you as a consultant or manager prevent it? family legacy, and the Collin Street Bakery fruitcakes are now famous world-wide. 6. What kinds of preventative measures do you see (eng. cameras above the cash registers) and how effective do you think those measures are (e.g. do you think But McNutt was puzzled. The bakery, that seemed so outwardly successful, was someone is actually watching all those video feeds all day ) ? strapped for cash and struggling to pay bills. No one, including the company controller, Sandy Jenkins, seemed to be able to identify the problem. It just seemed that costs were increasing faster than revenues. Answer the questions in complete sentences and correct grammar. Make sure if you Sandy had come on board in 1998 as a bookkeeper and had been promoted several use any sources that they are sited in APA 7* formatting. No minimum or maximum times, ending up as controller in 2004, earning an annual salary of $50,000, which he number of words, the question just needs to be answered in full. apparently didn't really need, since he had come into an inheritance. Sandy drove a brand-new Lexus, took lavish vacations, bought his wife fine jewelry, belonged to the country club, remodeled his home, and spent money like water. The inheritance had changed his life, taking him from a shy, introverted accountant to a high-roller, but he still kept his job at the bakery. Sources McNutt's problem was solved by a new hire in the accounting department who questioned a voided check. That one clue led to another, and then another, which Vine, Katy "Just Desserts," Texas Monthly, January 2016. (Accessed May 18, 2020). eventually led back to Sandy Jenkins. It started when Jenkins, feeling underpaid, bought the Lexus and paid for it with a company check, covering his tracks by voiding that check in the system and writing another check to a legitimate vendor, which he then never sent. In the bank account, a check cleared for $20,000, and the accounting records showed a payment of $20,000. Emboldened by his success, Jenkins repeated his scheme, over and over, eventually skimming almost $100,000 a month from the bakery. Since neither McNutt nor anyone else audited the accounting records, nobody had any idea this was going on. All McNutt knew was that the company was strapped for cash. Case Study: The Great Texas Fruitcake Caper. Authored by: Joseph Cooke, Provided Case Study: The Great Texas Fruitcake Caper. Authored by: Joseph Cooke. Provided by: Lumen Learning. License: CC BY: Attribution by: Lumen Learning. License: CC BY: Attribution