https://www.imanet.org/-/media/d62bf5c3348d434bb3e1f381a1e263ad.ashx

Case Study: Le-Nature's Inc. Fraud: What Happened and Why?

1. Tell what public company auditors should have picked up on at Le-Nature Inc and what Podlucky may have done to enable the dismissal of EY auditors.

2. Discuss COSO Internal Control Framework at Le-Nature. From the facts and circumstances, was the COSO Internal Control Framework followed?

3. Discuss Le-Nature's material weaknesses in internal control. What are the weaknesses?

4. Apply the Fraud Triangle to Le-Nature. Research has proven that fraud occurs with behaviors noted in the Fraud Triangle; apply that methodology.

5. State deficiencies in corporate governance at Le-Nature.

6. Examine the professionalism of participants at Le-Nature. Document the shortfalls in professionalism in all players at Le-Nature.

7. Should have a trial run for the final presentation on Le-Nature and should cover "Would the 2017 Update to COSO have made a difference at Le-Nature?."

8. Articulate lessons learned in the aftermath at Le-Nature. What mechanisms and safeguards would you expect in an organization after this case study? How should the audit mindset have worked at Le-Nature? Contrast differences in the Internal Audit function.