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 in this series centers around a global pharmaceutical company, Oteal Pharmaceuticals, and possible financial statement fraud.
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.
Jodi Craft, Oteal’s newly promoted Chief Accounting Officer, was concerned that financial control weaknesses put Oteal at risk of potential revenue manipulation and other operational risks. Now, shortly before the company’s quarterly financial filing deadline, one of her accounting managers provided Craft with documentation raising concerns of possible accounting fraud at its South American office. Craft needed to decide what to do.
What you’ll learn
The case study will provide you information to examine Oteal through three lenses:
The Fraud Triangle | Fraud is more likely to occur when there is pressure to achieve what might be considered unreasonable, a perceived opportunity to commit fraud that might go undetected, and a rationalization that justifies the fraud to the perpetrator. The case study will highlight which elements of the fraud triangle were present which could have led to fraud.
Financial Reporting Supply Chain | Fraud detection and deterrence is a shared responsibility between all members of the financial reporting supply chain. The case study will allow participants to think about the roles and responsibilities of each part of the supply chain, how each of those parts are designed to perform, and where problems can occur.
Key Fraud Prevention Themes | The case study will help participants examine key themes which can help deter and detect fraud including culture, skepticism, and communication.
Hear from others
Hear from others who have participated in the AFC-led case teaching on how this case study can be a useful learning tool for members of the financial reporting supply chain, anti-fraud professionals, students, and academics to enhance their skills and awareness of fraud deterrence and detection.
Featuring: Charles Blank (Managing Director – Forensic Investigation and Disputes Services, Grant Thornton LLP), Dan Ramey (President, Houston Financial Forensics LLC), Elizabeth Olson (National Assurance Director – Methodology, BDO USA, LLP), Brian Wilson (Experienced Financial Executive), and David Dominguez (Director of Internal Audit, Itafos)
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.