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

Socpus ID

80052367043 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/80052367043

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