Title
Accounting Fraud At Cit Computer Leasing Group, Inc
Keywords
Auditing; Forensic accounting; Fraud; Internal controls
Abstract
The case chronicles a newly promoted manager's search to uncover an inventory fraud that had been perpetrated by her supervisor at CIT, a publicly held company. During the ensuing investigation, CIT and the Florida Department of Law Enforcement identified 36 different transactions involving the diversion of nearly 2,500 computers, with a conservative estimated total loss to the company of $637,000. Students are also exposed to the importance of internal controls, red flags, the fraud triangle, and forensic accounting techniques. The case also lets the reader see what occurs when, due to management override of internal control, a subordinate no longer trusts a supervisor's communicated information. This can be used at the undergraduate or graduate level in an Accounting Information Systems, Internal Auditing, or Auditing or Fraud/Forensic Accounting class. The Teaching Notes also have an accompanying video, in which the investigators and prosecutor discuss issues related to the case, including the specifics of the case, whistleblowers, and the fraud triangle, and the roles of law enforcement and the judiciary. Included in the video are interviews with the Florida Department of Law Enforcement investigators and the prosecuting attorney that were involved in the CIT case.
Publication Date
8-1-2011
Publication Title
Issues in Accounting Education
Volume
26
Issue
3
Number of Pages
569-591
Document Type
Article
Personal Identifier
scopus
DOI Link
https://doi.org/10.2308/iace-50003
Copyright Status
Unknown
Socpus ID
80052367043 (Scopus)
Source API URL
https://api.elsevier.com/content/abstract/scopus_id/80052367043
STARS Citation
Michelman, Jeffrey E.; Gorman, Victoria; and Trompeter, Gregory M., "Accounting Fraud At Cit Computer Leasing Group, Inc" (2011). Scopus Export 2010-2014. 2653.
https://stars.library.ucf.edu/scopus2010/2653