Fraud Examination- Maxwell Case Essay

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Maxwell Case Fraud Investigation Summary This report deals with the internal investigation of fraudulent activities committed by Anna Thomas of Maxwell and Company. The investigation determined that Anna had been making personal charges and cash withdrawals on Rusher Automotive’s credit card for two and a half years. Introduction The accounting profession believes there are three conditions necessary for fraudulent behavior, as well as a responsibility to to perform quality services with integrity, objectivity, and professionalism. Accounting firms have the responsibility to hire and monitor competent personnel, so they can fulfill their assigned responsibilities. This report will explain how all three conditions were present in Anna’s actions, how Max and Company failed to uphold quality, and describe Anna’s background. Body In the Maxwell case three elements where present that allowed fraudulent activities to occur in the Rusher Automotive company. The first element discovered was opportunity. Maxwell & Company assigned one accountant, Anna Thomas, to this client, Rusher Automotive. Anna did all bookkeeping work, recording journal entries, preparing checks for bills financial statement reporting for this client and she also did regular daily work like taking the deposit to the bank for the client. This gave her the utmost of opportunity to do whatever she wanted with the funds. The next element was exposed was pressure. Anna had overwhelming pressure to provide for her family. Her husband was on disability and provide very little to the family finances. After her working a menial job with no college degree their debt escaladed. She then had the pressure to pay for her college and raise two children. She also had the pressure for a nice home and car. After obtaining those items, she had the pressure to continue to pay for them.

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