Carol Callaway Dee, Cindy Durtschi, and Mary P. Mindak
Issues in Accounting Education, Volume 29, Issue 3, pp. 443-458.
Grand Teton Candy Company (GTCC) is considering an initial public offering (IPO). To go public, GTCC will need an audit by a large accounting firm with a solid reputation and experience in audits of IPOs. As a precursor to the formal audit, Elsie Driggs, one of the owners of GTCC, has hired her brother’s CPA firm to ensure the books are in order. Her brother notices some red flags of fraud, so he forms a team of young accountants from his firm to carefully comb through his sister’s records to ensure she does not have problems when the formal audit takes place. You have been placed on the team and your task is to investigate your boss’ suspicions that there is fraud at Grand Teton Candy Company. You are to prepare a written report for your boss that includes the name of the fraudster(s), what he or she did, and how the perpetrator(s) benefited from the crime.