Investigating fraud at Tri-County Auto: A case study

This short case requires students to conduct a fraud risk assessment and an analysis of an income statement for a small business. This is then used to determine whether a fraud may be occurring and whether criteria for predication has been met. Students will learn about the forensic technique of invigilation and use the results of an invigilation to estimate the amount of losses from fraud that may have occurred at the business. The case setting is a single-owner automotive repair facility, a type of business with which most students have some familiarity. As a final step, students are asked to recommend internal control policies that can prevent or detect fraud. This case is appropriate for fraud courses as well as auditing courses that include a fraud component.