Case Study Daniel Jones Fraud

The Fraud Examination Unit at Computers Company submits this preliminary Report of Investigation to the Chief Executive Officer about a suspected corruption scheme in the company.
In the broadest sense, fraud can encompass any crime for gain that uses deception as its principal modus operandi (Wells, 2011). Therefore, after learning of the suspected corruption scheme in the company, the objectives of the Fraud Examination Unit were to determine whether a possible corruption scheme existed; identify the symptoms of fraud that might have been evident to a fellow employee of Computer Company; identify and describe the key fraud elements present in the case; highlight what positive or negative consequences can occur if executive management was
According to The Center for Audit Quality (2010), “there are three key elements which are typically present when individuals commit fraud: perceived pressure, perceived opportunity, and the ability to rationalize fraudulent behavior;” and the team agreed that these three key elements were all present in the Daniel Jones fraud. First, perceived pressure was identified because Daniel Jones had the desire of possessing luxurious amenities. This was evident when he wrote on his social media sites that “You figured that I like big boy’s toys by looking at some of my pictures, “I just can’t resist them”. He had a perceived pressure to drive expensive cars and own luxurious amenities which made him to commit fraud. Second, since the company did not require supervisor approval for software and hardware orders under the cost of goods sold of $1,000, this gave Daniel great opportunity to commit fraud because of the weak internal controls. Finally, Daniel Jones could have rationalized his actions by indicating that the software and hardware had a very low cost to company because he was placing individual orders all under the cost of goods sold amount of
However an examination of the directive revealed that it might create positive and negative consequences for future fraud prevention programs. This measure will definitely have a positive consequence on fraud prevention. This will allow Computer Company to have a stronger internal control over cost and tighter sanctions. They will have a greater scrutiny at high level corporate structure and establish a moral cultural; set a strong and cultural “tone at the top”; and also managers will take more control of their department since they will be held responsible for cost and expenses. On the other hand, the negative consequence is if the vice president gets more power in hand, they may be more tempted to commit their own form of