Mountain State Sporting Goods: A Case of Fraud? A Case Study in Fraud Examination

The case presented in Chapter 7 of your textbook (Mountain State Sporting Goods: A Case of Fraud? A Case Study in Fraud Examination) is derived from an actual fraud occurrence. Written by Robert J. Rufus and William Hahn, the case was published as an instructional resource by the American Accounting Association in Issues in Accounting Education (2011, Vol. 26, No. 1, pp. 201-17) and is reprinted with permission.

As you may have noted, the entire chapter is dedicated to said case. Your assignment is to accomplish all the Phases stated below.

THE INVESTIGATION

Phase I (a): Confirm the Reasonableness of the Suspicions of Fraud

Phase I (b): Fraud Hypothesis

Phase II (a): Test Your Hypothesis via Financial Statements Analysis

Phase II (b): Test Your Hypothesis via Journal Entry Testing

Phase III: Refine and Confirm Your Hypothesis via Interviews

Phase IV: Draw Your Conclusions and Communicate Results

Phase V: Present a Discussion of Mr. Hess's Roles, Duties and Responsibilities

Phase VI: Present Recommendations for Resolution and Remediation