This lesson will help you review the material in the readings. Follow the instructions to progress through the content and answer the questions. You may complete this activity one time. Once you have submitted your response you will not be able to edit it afterward. If you leave the lesson before clicking "submit" on an answer you will be able to re-enter the lesson on that question, however, any prior text entered for that question will be deleted. As mentioned in the Equity Funding: The Fraud of the Century Resources, Equity Funding was one of several frauds that served as an impetus for studies and guidelines implemented subsequent to the 1970s. Just as in the Module 6 Lesson, this lesson

This lesson will help you review the material in the readings. Follow the instructions to progress through the content and answer the questions. You may complete this activity one time. Once you have submitted your response you will not be able to edit it afterward. If you leave the lesson before clicking "submit" on an answer you will be able to re-enter the lesson on that question, however, any prior text entered for that question will be deleted. As mentioned in the Equity Funding: The Fraud of the Century Resources, Equity Funding was one of several frauds that served as an impetus for studies and guidelines implemented subsequent to the 1970s. Just as in the Module 6 Lesson, this lesson will ask you to explore the Equity Funding Fraud case in the context of some of the concepts and guidance. Please note that the information provided in this case may not be sufficient to fully answer the questions provided. Please feel free to utilize the course textbook, suggested resources listed in the case, and other information you deem relevant. You will be asked to answer the remaining five questions in this lesson. The National Commission on Fraudulent Financial Reporting (NCFFR) recognized that analytics in its various forms was the best fraud tool. The use of analytics would have discovered most of the 50 most significant frauds in American history. The perpetrators of the Equity Funding Fraud reversed the process and created analytics to be consistent with the inflated revenues to fool the auditors, investors, insurance regulators, and Wall Street. - State insurance premium taxes were paid to the appropriate taxing authorities on both genuine and fictitious policies. - Expenses were falsified to give the appearance that a normal relationship existed between premium income and expenses such as commissions, and credit reports. - Records of death claims on valid and fictitious policies, were falsified to manifest an appropriate relationship. - Reported lapses of policies on fictitious policyholders were designed to be consistent with actual policyholders. Question 8 What type of sampling/analytics techniques could have been used by the auditors to discover the fraud? List three techniques that the auditors should have used and explain how they would have helped