Title

Embezzlement at the Grandview Community Recreation Association

Department/School

Accounting

Date of this version

2019

Document Type

Article

Keywords

fraud; embezzlement; fraud triangle; not-for-profit organizations

DOI

https://doi.org/10.2308/iace-52392

Abstract

This case is based on actual fraud at a not-for-profit organization. In this case, students assume the role of a volunteer forensic investigator who assists the local police department to investigate the possible embezzlement case for a recreation association. Students learn about the activities and the people who are involved with the association. Through the examination of various documents, they identify any discrepancies between the association's accounting records and bank statements. Students apply the fraud triangle to gain a perspective on the possible motivation, opportunity, and rationalization of the likely perpetrator. Students become familiar with the concept of embezzlement and larceny, and recommend fraud prevention practices for the association. After completing this case, students are more aware of why and how small not-for-profit organizations are more susceptible to fraud than are other organizations. This case is appropriate for use in a forensic accounting course or an advanced auditing course.

Volume

34

Issue

2

Published in

Issues in Accounting Education

Citation/Other Information

Chui, L., & Matson, D. M. (2019). Embezzlement at the Grandview Community Recreation Association. Issues in Accounting Education, 34(2), 41-59. https://doi.org/10.2308/iace-52392

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