Sharolyn Grant, a woman from Brisbane, was a shopping addict and had run up considerable debt on excessive purchases of jewellery and clothes. She would also go to the grocery store and use plastic, take her kids to miniature golf, and go bowling with her husband. Christmases were a “little bigger,” with gifts like $100 remote-control cars for her sons. Her husband was not aware of the addiction. She made $21 an hour at work, and her husband earned a little bit more as a machinist at an aircraft company. Family finances were a constant balancing act.

Sharolyn turned to her employer, Singh Consulting. She raised money to pay down her obligations by repeatedly padding the company’s expense accounts. She took reimbursements for trips and conferences she did not attend. In her three years of work, she had collected a total of $240,000 from her employer. It got to the point where she didn’t feel like she was doing anything wrong. When Singh found out, Grant admitted the fraud and pled guilty to one count of fraud and said that she was planning to pay it back.

Required:

1. What type of fraud did Sharolyn Grant commit?

(1 mark)

Type of Fraud (e.g. Management Fraud)

Question 1 (continued)

2. Explain any four factors/weaknesses that could have resulted in this type of fraud:

(4 marks)

Question 1 (continued)

3. Identify 4 strategies that could be used to avoid or reduce this kind of fraud in a company? Explain in this case.

(4 marks)

No.	Factors/weaknesses
1
2
3
4

Question 1 continued next page

Question 1 (continued)

4. Name the three components of the fraud triangle and describe how each one existed in this case. Be specific.

(1 mark)

No.	Strategies
1
2
3
4

No.

Components of fraud triangle

1

2

3

Sharolyn Grant, a woman from Brisbane, was a shopping addict and had run up considerable debt on excessive purchases of jewellery and clothes. She would also go to the grocery store and use plastic, take her kids to miniature golf, and go bowling with her husband. Christmases were a “little bigger,” with gifts like $100 remote-control cars for her sons. Her husband was not aware of the addiction. She made $21 an hour at work, and her husband earned a little bit more as a machinist at an aircraft company. Family finances were a constant balancing act.

Sharolyn turned to her employer, Singh Consulting. She raised money to pay down her obligations by repeatedly padding the company’s expense accounts. She took reimbursements for trips and conferences she did not attend. In her three years of work, she had collected a total of $240,000 from her employer. It got to the point where she didn’t feel like she was doing anything wrong. When Singh found out, Grant admitted the fraud and pled guilty to one count of fraud and said that she was planning to pay it back.

Required:

1. What type of fraud did Sharolyn Grant commit?

(1 mark)

Type of Fraud (e.g. Management Fraud)

Question 1 continued next page

Question 1 (continued)

2. Explain any four factors/weaknesses that could have resulted in this type of fraud:

(4 marks)

Question 1 continued next page

Question 1 (continued)

3. Identify 4 strategies that could be used to avoid or reduce this kind of fraud in a company? Explain in this case.

(4 marks)

No.	Factors/weaknesses
1
2
3
4

Question 1 continued next page

Question 1 (continued)

4. Name the three components of the fraud triangle and describe how each one existed in this case. Be specific.

(1 mark)

No.	Strategies
1
2
3
4

No.	Components of fraud triangle
1
2
3

Answer rating: 100% (QA)

Answer Given below Type of fraud It is an asset misappropriation fraud Here false expense claims are made by the employee FactorsWeakness 1 Lack of ex... View the full answer