explain

your reasons.

Case Study $2$

Mikos Frederick, an immigrant from Ukraine, is a hotel

owner in Las Vegas. Since his arrival in America during

the $1960$s$,$ Frederick has built a very successful and

popular hotel. Until recently, the hotel averaged

$$20$ million in total revenue per year. Lately though,

there have been rumors that Frederick$$s hotel, the Russian

Roulette, may be suffering unusual losses.

Recently, several of Frederick$$s key staff have quit,

complaining about low wages and nonexistent benefits.

In fact, the hotel$$s main attraction, its popular restaurant

chef Alec Klarinko, quit as well as the hotel$$s headlining

performer.

While Frederick focused on coming up with a new

compensation policy, he hired CPA Tony Slinko to

look into the hotel$$s diminishing cash flows. The first

thing Tony did was head for the kitchen to partake of

the award$-$winning food. The new chef, Jim Smoot,

wasn$$t what Tony expected. First of all, he wasn$$t

Russian, as most of the employees seemed to be$,$ and

second he refused to talk about why he had come to the

Russian Roulette when so many wanted to leave.

After his visit to the kitchen, Tony began sifting

through the accounting documentation looking for

possible fraud symptoms. Tony reasoned that if employees

felt like they weren$$t being compensate