Company Fraud: An Evaluation Report
OPTION #1: COMPANY FRAUD: AN EVALUATIVE REPORT
The Portfolio Project Option 1 for ACT450 is a research report that identifies and analyzes a company that has been indicted for fraud. The report also will evaluate the auditor’s role in relation to the fraud.
- To conduct your research, choose as a case study one of the companies listed below, or obtain approval from your instructor to use a public company not on the list.
- Children’s Cancer Fund of America
- Your report must describe the issues surrounding the company and any company policies in relationship to the impact those might have on public audits/accounting.
- Provide the following elements in your paper:
- An executive summary identifying the company, the fraud, the affected stakeholders, and the ultimate resolution
- A brief history of the company
- An analysis of the auditor’s role in the fraud, including any auditing standards that the auditors did not follow
- Identification of internal controls that were circumvented or lacking and that could have prevented the fraud
- Identification of accounting policies currently in effect that are designed to prevent similar problems from occurring again, or, if no policy exists, a proposal for a solution that would prevent a recurrence.
Your written response paper should be 8-10 pages in length. Type your paper in a Word document and follow APA format, according to CSU-Global Guide to Writing and APA Requirements. Include a title page and reference page. Use four (4) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.
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Abstract
The CCFOA is one of the four controversial charity foundations founded by the Reynolds. Accused by the Federal Trade Commission (FTC), the charity foundation together with three others were alleged to have bilked about one hundred and eighty-seven million dollars from donors (Rebecca, 2015). The CCFOA was investigated by FTC through a forensic audit which revealed evidence of what would become the largest charity organization frauds in the U.S. The FTC announced the findings of its investigations in a press release in which FTC and all the fifty States and D.C would commence in pursuing charges against 4 cancer charity organizations, charges based on the accused organizations bilking over $187 million worth of donors money (Federal Trade Commission, 2015). Under the leadership of its founder, James Reynolds, the CCFOA solicited donations from Americans and claimed to have spent all those resources on catering for consumers’ hospital care, transport to and from a hospital for chemo sessions as well as pain medicines for the kids.
(2,547 words)