Barbara Darko is an independent CPA and Certified Fraud Examiner hired by a joint task force of the SEC and the U. S. attorney’s office to investigate a case of financial statement fraud. The case involves Great Burger, Inc., an inter-national fast- food company. The company directly owns and runs some stores, and others are operated under franchising arrangements with local owners. It has operations is the United States and all parts of Latin America. Barbara has heard from a reliable informant that Great Burger is a shell company for organized crime. Instead of just selling fast food, the company launders proceeds from illegal drug sales. She believes that the company reports drug revenues as fast- food sales, and engages in financial obfuscation through series of intercompany sales and transfers between its U. S. division and its foreign subsidiaries.

a. Develop a fraud theory for this case.
b. Develop a plan for gathering evidence and testing your fraud theory.

  • CreatedFebruary 26, 2015
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