The Tyco fraud described in the text has been referred to as one of the worst examples of executives who “feed at the corporate trough.”
a. Describe the fraud committed at Tyco.
b. What type of fraud did it commit?
c. Consider the fraud conditions of pressure, opportunity, and rationalization. Which of these three elements seem to dominate in this fraud? Explain your answer.
d. Describe the auditor’s responsibility regarding this fraud.
e. Why are outsiders dismayed when they learn about this type of fraud?
f. Is the description of executives “feeding at the corporate trough” an accurate description? Explain your answer.