Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 11

Your auditing firm has just landed a new client: a large software company managed by two brothers who together own 15 percent of the stock. You learn that the company fired its last auditor. You also notice that the company is involved in a lot of off-the-book business ventures. Identify the possible symptoms of fraud and to which aspect of the fraud exposure rectangle each symptom corresponds.