A number of large cases of fraud have come to trial and the postmortems are completed. You have learned a lot related to identifying fraud risk, mitigating control activities, as well as promoting organizational ethics and compliance. You now should understand that fraud incidence is more common than previously thought, and that there are many techniques, methods, and motivations to fraud. You also should understand that fraud that is uncovered may just be a symptom of other issues and problems (for example, when management lacks integrity, a restatement of the financial statements may mean that the independent outside auditor and/or internal auditor was successful in foiling attempted fraud). We now have a lot more regulation—a classic response to similar periods in history. Your group project is strategic in nature and relates to how internal auditors can deal with fraud and the impact of some of the current regulations such as the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010. In the United States, as of this writing, the unfolding Wells Fargo scandal has already resulted in then CEO John Stumpf’s resignation (see CFPB Consent Order at http://files.consumerfinance.gov/f/documents/2016-CFPB- 0013Wells_Fargo_Bank_N.A.--_Consent_Order.pdf). The Wells Fargo firing of 5,300 employees as a result of the opening of 2 million unauthorized customer accounts and credit cards have raised numerous unanswered questions: Where were the internal controls? Where were the internal auditors? Where were the external auditors? Where were the regulatory auditors? Where was the risk management function, and what happened with the so-called three lines of defense? Where was the audit committee? Do we really need a new agency called the Consumer Financial Protection Bureau (CFPB, see http://www.consumerfinance.gov/) without whose $100 million fine imposed on Wells Fargo these matters may have never come to light? The first part of this case study is to select three such cases in your relevant local, national, or international jurisdiction (for example, the FIFA bribery and corruption scandal has affected any countries around the world, especially because soccer is such a popular sport globally, see https://www.wired.com/2015/05/fifa-scandal-explained/). Your task is to look at the root cause of each fraud or corruption incident and identify techniques that might have prevented each from occurring, or at least detected it timely. Note the laws and regulations, or professional standards, policies, and procedures, that may have been violated as you go about evaluating the strength of internal controls and their operating effectiveness. As a group, prepare a PowerPoint presentation. The presentation should include two or three slides for each fraud case that summarize the fraud or corruption incident, approximate loss incurred, the parties involved in the fraud/corruption incident, the root causes, and the corrective actions that have been taken since the fraud/corruption incident occurred. Also indicate whether Sarbanes-Oxley, the Dodd-Frank Act, and other applicable laws and regulations (or comparable local legislation and regulation) are robust enough to preclude such a fraud from occurring in the future. Additionally, describe the corrective actions your group would recommend to prevent, or detect timely, this type of fraud. On a separate slide, compare the root causes of the three fraud/corruption cases you study. Note how the three lines of defense were ill-conceived and designed, were not operating effectively, or were somehow compromised by those perpetrating fraud/engaging in corruption. On a final slide, convey what your group learned as a result of completing this case study.