I just need to know what kind of fraud has been committed Page of 12 ZOOM Scenario

 
 I just need to know what kind of fraud has been committed

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Page of 12 ZOOM Scenario 1 You work for a litigation support CPA firm, Sump, Tings, Fishy & Associates (STF or Fishy), based in Fargo, North Dakota. Among other things, your firm specializes in assisting law fims in fraud cases. This requires all your associates to sit for and become Certified Fraud Examiners (CFE). You also employ CPAS, CIAS, CISAS and other credentialed professionals. Although you assist in all kinds of fraud-related cases, your specialty is construction-related fraud. The nature of your day-to-day business is to gather evidence; to perform investigations which include compiling and analyzing data, conducting forensic reviews on financial statements and other financial information; to assist in creating witness files for trial; to testify as an expert witness in legal proceedings, etc. On the sixth of June, 2006, (6/6/06), following a particularly delightful lunch at one of Fargo's best Thai restaurants, Hell's Kitchen, you return to your office and to a very intriguing phone message from a Louisiana attorney, Bubba Thibodaux. You immediately return the call and learn the following: Welcome to the Party A law firm, based in Baton Rouge, Louisiana, Steamy, Muggy and Dank (Steamy), has an oil field client from Houston, Texas, Just Drill Baby (Drill), who has hired a sub-contractor in North Dakota, Cee, Rook, Ed & Partners (C.Rook.Ed Partners or CRookEd Partners or CRookEd, dba Jefferson Construction Company, to protect the guilty), to assist them (Drill) in an oil pipeline being constructed in North Dakota along I-94 from Fargo to Bismark, a distance of some 200 miles. Bubba is the managing partner of Steamy. It seems the contract between Drill and CRookEd Partners was around $50 million, but has ballooned to over $150 million. You further learn that Drill is a multi-billion dollar corporation, and the contract between Drill and CRookEd Partners was not monitored well at Drill's corporate headquarters due, in part, to a recent lack of an internal audit function (the internal auditor recently left), and because the contract with CRookEd was relatively small for Drill. Page of 12 ZOOM Scenario 1 You work for a litigation support CPA firm, Sump, Tings, Fishy & Associates (STF or Fishy), based in Fargo, North Dakota. Among other things, your firm specializes in assisting law fims in fraud cases. This requires all your associates to sit for and become Certified Fraud Examiners (CFE). You also employ CPAS, CIAS, CISAS and other credentialed professionals. Although you assist in all kinds of fraud-related cases, your specialty is construction-related fraud. The nature of your day-to-day business is to gather evidence; to perform investigations which include compiling and analyzing data, conducting forensic reviews on financial statements and other financial information; to assist in creating witness files for trial; to testify as an expert witness in legal proceedings, etc. On the sixth of June, 2006, (6/6/06), following a particularly delightful lunch at one of Fargo's best Thai restaurants, Hell's Kitchen, you return to your office and to a very intriguing phone message from a Louisiana attorney, Bubba Thibodaux. You immediately return the call and learn the following: Welcome to the Party A law firm, based in Baton Rouge, Louisiana, Steamy, Muggy and Dank (Steamy), has an oil field client from Houston, Texas, Just Drill Baby (Drill), who has hired a sub-contractor in North Dakota, Cee, Rook, Ed & Partners (C.Rook.Ed Partners or CRookEd Partners or CRookEd, dba Jefferson Construction Company, to protect the guilty), to assist them (Drill) in an oil pipeline being constructed in North Dakota along I-94 from Fargo to Bismark, a distance of some 200 miles. Bubba is the managing partner of Steamy. It seems the contract between Drill and CRookEd Partners was around $50 million, but has ballooned to over $150 million. You further learn that Drill is a multi-billion dollar corporation, and the contract between Drill and CRookEd Partners was not monitored well at Drill's corporate headquarters due, in part, to a recent lack of an internal audit function (the internal auditor recently left), and because the contract with CRookEd was relatively small for Drill.

Answer rating: 100% (QA)

The scenario above revolves around the manner in which the contract between Crooked and Drill came i... View the full answer