ACCT 5510 Mystery Diners Case
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
ACCT 5510
Mystery Diners Case – 25 points
INTRODUCTION
The Association of Certified Fraud Examiners (ACFE) regularly issues a comprehensive biannual Report to the Nations on Occupational Fraud andAbuse (ACFE Report) to help assist its members, practitioners, academicians, businesses, governments, and the public in the detection and deterrence of occupational fraud. Employees that understand a company’s system of internal controls and its weaknesses are able to commit and conceal fraud easier than company outsiders. Thus, a better understanding of how fraud may be committed and can be prevented and detected can lead to a better system of internal controls that helps make it more difficult to steal from a company.
REQUIRED
Watch the assigned episodes of Mystery Diners (I will provide recordings, but just in case you want to watch outside of Panopto, the links/prices are below), study the most recent ACFE Report and answer the questions. Responses should be typed and will be turned in using Canvas. You may complete this case solo or in pairs. Only one assignment should be turned in per group.
NOTES:
The assigned episodes of Mystery Diners can be viewed for $1.99 each at the following links:
Case #1: Fraternal Disorder https://www.youtube.com/watch?v=gFDTqArEs5s
Case #2: Coupon Coup https://www.youtube.com/watch?v=OXhVDx6zysU
A PDF file of the most recent ACFE Report can be downloaded at the following link:
https://acfepublic.s3-us-west-2.amazonaws.com/2020-Report-to-the-Nations.pdf
Type your responses to each question using complete sentences. Poor grammar and
spelling will result in a lower assignment grade. Each question is worth 2.5 points. Be sure to pay attention, some questions have multiple parts.
Mystery Diners: Case #1
General question
1. What type of fraud is the most common and also the least costly? What type of fraud is the least common, yet the most costly? Please also provide mean and median amounts of losses.
2. The lack of internal controls has led to about what proportion of frauds?
Fraternal Disorder
1. What types of fraud were committed in this episode of Mystery Diners? (Be specific—use the fraud tree within the ACFE to identify the appropriate category and all sub- categories/such-schemes that may apply.)
2. Consider the size and industry of the organization in the episode. Based upon the ACFE, what is the frequency and median losses typically suffered due to the frauds identified in (1.)? (Provide responses for both type and size.)
3. Consider the two instances of beer being provided to (1) the waiter and (2) college students outside without payment. When observing the bartender, what piece of the “typical” order to cash process does he seem to be ignoring? What are the effects of this behavior on the financial statements?
4. What control activity likely helped the owner discover the missing kegs? What additional control activities would you recommend to prevent the keg scheme from happening again?
Mystery Diners: Case #2
Coupon Coup
1. What types of fraud were committed in this episode of Mystery Diners? (Be specific—use the fraud tree within the ACFE to identify the appropriate category and all sub- categories/such-schemes that may apply.)
2. What positions within the organization did the perpetrators hold in this episode?
3. How do those positions rank with respect to frequency and median loss from committing fraud?
4. Briefly describe what you would recommend with respect for how coupons should be handled in the future.
General question:
1. It seems that the camera setup worked to “catch” poor behavior by the employees. What prevents every establishment from doing this?
2022-09-20