Should a fraud be suspected and the type of fraud it could be
MBA-521: Information for Decision Making, Business Analysis and Performance Measurement
Read the case “Houston We Have A Problem: They Paid Themselves Bonuses!” Using the information from the lectures and your own research, answer the following questions:
The case ends with Amanda thinking about the succession of events since she came to Vanderville Plastic Company (VPC) to better understand what this all meant, what was likely to happen next, and what she should do.
What does it all mean?
Should a fraud be suspected and the type of fraud it could be?
Discuss the factors present at VPC that were indicative of incentives, opportunities, and rationalizations to commit fraud.
Did management override controls and if so, why?
What is likely to happen next? What are the potential courses of actions that could be taken next by Houston (and Jersey)?
Recommend changes to VPC’s control environment to prevent the same situation from happening again.
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