The Anti-Fraud Collaboration has developed a successful series of case studies centered around hypothetical fraud scenarios. Each case study starts with a set of facts about a fictional company, and through the case, members of the financial reporting supply chain and other relevant stakeholders can then consider what could have been done to remediate the issues and mitigate the risk of fraud. Through the discussion and examination of each case study, participants will exercise the critical skills necessary to deter and detect fraud and better understand the principles which can make fraud more likely to occur.
The latest installment centers around a global pharmaceutical company, Oteal Pharmaceuticals, where possible financial statement fraud intersects with the use of generative AI (GenAI).
Summary
Oteal is a publicly traded company that had developed and sold pharmaceutical products for the US market since the 1990s. As part of a new ambitious strategy, it began selling products in South America two years ago.
The expansion into South America introduced new market, language, contract, compliance, and financial reporting risks.
Shortly before a quarterly filing deadline, Jodi Craft, Oteal’s newly promoted Chief Accounting Officer, learns that Oteal’s approved GenAI tool identified unusual revenue patterns and possible side terms. Craft must address potential revenue-recognition issues and gaps in GenAI governance and controls.
What you’ll learn
The case study examines Oteal through four lenses:
The Fraud Triangle
Explore how pressure, opportunity, and rationalization can increase fraud risk—and how GenAI may amplify each.
Financial Reporting Supply Chain
Consider responsibilities, interdependencies, and potential breakdowns in oversight and communication among members of the financial reporting supply chain.
Key Fraud Prevention Themes
Examine how culture, skepticism, and communication help deter and detect fraud.
GenAI Governance and Controls
Consider acceptable use, accountability, monitoring, documentation, data integrity, and human review of GenAI outputs.
Hosting a discussion
For all Anti-Fraud Collaboration case studies, we offer a companion discussion guide as a blueprint to help experienced trainers and educators lead an interactive discussion based on the case study with members of the financial reporting supply chain and other relevant stakeholders with an interest in fraud deterrence and detection. The discussion guides are specially designed for individuals trained in case method teaching.
If you have experience in leading training or education programs and wish to request a free copy of any of these discussion guides, please complete the request form.