Fraud Case 5-1 Rac Philippe was a warchouse manager for Atkins Oilfield Supply, a business that operated across cight Western states. She was an old pro and had known most of the other warehouse would come to do a physical count of the inventory at each warehouse. Recently, Rae's brother started his own drilling company and persuaded Rae to "loan him 80 joints of 5-inch drill pipe to use for his first well. He promised to have it back to Rae by December, but the well encountered problems and the pipe was still in the ground. Rae knew the auditors were on the way, so she called her friend Andy, who ran an- other Atkins warchouse. "Send me over them back to you ASAP" said Rac. When the auditors came, all the pipe on the books was accounted for, and they filed a "no-exception" report. managers for many years. Around December each year, auditors r 80 joints of 5-inch pipe tomorrow, and I'll get Requirements 1. Is there anything the company or the auditors could do in the future to detect this kind of fraudulent practice? 2. How would this kind of action affect the financial performance of the company