MAXWELL AND COMPANY: STAFF AUDITOR EMBEZZLEMENT AT A SMALL CLIENT CASE STUDY

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 Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit. For additional explanation, you may want to review Buckhoff [2001].)

d. It has It has been suggested that there may be a fourth element of fraud (see Wolfe and Hermanson 2004). Discuss whether this fourth element is present in Anna Thomas' fraud at Rusher Automotive.