| Summary: | Based on real events associated with the fraud committed by Rita Crundwell in Dixon, ILL., this case provides basic classroom discussion with regard to internal controls, fraud prevention, and the ethical responsibilities of management accountants. The case focuses on Cathy Clark, City of Dixie’s accounting specialist, as she begins to realize that the comptroller and treasurer, Kimberly Hedges, may be responsible for embezzling significant city funds by circumventing internal controls and misrepresenting financial reporting of the stolen funds. There were several signs that fraud might be occurring, but for some reason no one in the City of Dixie noticed the signs of this extreme fraud case. Students are required to use the fraud triangle to identify internal control weaknesses and fraud risk factors and to consider the ethical responsibilities of management accountants in preventing fraud.
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| Item Description: | Originally Published InKraut, M. A., Porter, J. C., & Gray, A. (2016). Tough choices: Ethical decisions in whistleblowing. IMA Education Case Journal, 9(1), Article 1. |
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