You are offered a very lucrative controller position at a formerly prestigious company only a few months after receiving your CPA. Throughout the interview process you note a strange vibe from management and very little details are given regarding the previous controller. In the last round of interviews the managers show you their latest financials and ask you what could you do to help improve profitability. You had been expecting this type of question so you knew key industry ratios of the top competitors (this company was no longer one of them).

Upon seeing the financials you were surprised by a few things: 1. The companies financial performance is far above average, yet in your research they were never listed as a leader in industry. 2. You review a customer list and note that most of the company's sales are from a few businesses you have never heard of before 3. Miscellaneous and admin expenses seem extraordinarily high compared to industry. You ask about the accounts but are never given a straight answer.

You complete the interview and are offered a job, but you are given the weekend to decide if you want to accept.

What are some of the red flags? What type of fraud may be occurring? What type of workplace conduct may be occurring here that may be contributing to fraud? Should you accept the offer? Why or why not? (5 marks)