Accounting: Fraud and Problem-based Learning Case
ISSUES IN ACCOUNTING EDUCATION Vol. 18, No. 2 May 2003 pp. 137ñ173
The Tallahassee BeanCounters: A Problem-Based Learning Case in Forensic Auditing
Cindy Durtschi
ABSTRACT: You are auditing the books of the Tallahassee BeanCounters (TBC), a minor league baseball team in Tallahassee, Florida. During your audit the teamís owner, Franklin Kennedy, approaches you and offers an additional fee if you will quietly investigate the possibility of fraud within the firm. Mr. Kennedy reports that he received an anonymous tip and, based on that information, believes that someone within the firm could be perpetrating fraud. Your task is to use the information given here (the financial books and back-up documents) as a starting point for your investigation. From that starting point, use creativity and investigative skills to determine what other information you need. After obtaining requested information, use all the material you have gathered to determine whether fraud was committed. To completely solve a fraud, you must show the following: who committed the fraud, how it was committed, that it was intentional (not error), the economic impact of the fraud, and that it was your suspect who gained financially from the fraud.
INTRODUCTION ssume you are a CPA hired to audit the books of a minor league baseball team, the ìTallahassee BeanCountersî (TBC) from Tallahassee, Florida. It is mid-August, and you have been on the job several weeks preparing for the September year-end. During your stay, you have become acquainted with many of the employees in the teamís small office. You have also observed certain characteristics of TBC (as discussed below). Company revenues are generated from ticket sales, parking, concessions, programs, and promotional fundraising. The company president, Phil Ackers, oversees fundraising. Ben Hill, office manager, oversees the day-to-day functioning of the office. Tucker Johnson, general manager, has responsibility for the baseball players. Refer to
The Tallahassee BeanCounters: A Problem-Based Learning Case in Forensic Auditing
Cindy Durtschi
ABSTRACT: You are auditing the books of the Tallahassee BeanCounters (TBC), a minor league baseball team in Tallahassee, Florida. During your audit the teamís owner, Franklin Kennedy, approaches you and offers an additional fee if you will quietly investigate the possibility of fraud within the firm. Mr. Kennedy reports that he received an anonymous tip and, based on that information, believes that someone within the firm could be perpetrating fraud. Your task is to use the information given here (the financial books and back-up documents) as a starting point for your investigation. From that starting point, use creativity and investigative skills to determine what other information you need. After obtaining requested information, use all the material you have gathered to determine whether fraud was committed. To completely solve a fraud, you must show the following: who committed the fraud, how it was committed, that it was intentional (not error), the economic impact of the fraud, and that it was your suspect who gained financially from the fraud.
INTRODUCTION ssume you are a CPA hired to audit the books of a minor league baseball team, the ìTallahassee BeanCountersî (TBC) from Tallahassee, Florida. It is mid-August, and you have been on the job several weeks preparing for the September year-end. During your stay, you have become acquainted with many of the employees in the teamís small office. You have also observed certain characteristics of TBC (as discussed below). Company revenues are generated from ticket sales, parking, concessions, programs, and promotional fundraising. The company president, Phil Ackers, oversees fundraising. Ben Hill, office manager, oversees the day-to-day functioning of the office. Tucker Johnson, general manager, has responsibility for the baseball players. Refer to