| Summary: | Auditing Alchemy is a multimedia internal auditing case concerned with a possible inventory fraud in the firm’s manufacturing process. The company is a fabricated, simplified organization designed to introduce students to fraud investigation through active learning. The case is in three parts: analyzing production to look for evidence, observing the workplace to determine how a fraud could occur, and investigating individual employees to find a perpetrator. The case uses a variety of techniques, such as analytical procedures and net worth analysis, and requires students to observe a workplace and employee interviews through the use of a video walkthrough of the manufacturing facility. Students have the option of requesting and using supplemental information in the case as a means of determining a likely suspect. Deliverables are predication of fraud, weaknesses in the internal control system, a likely mechanism for the crime, suspect(s), and a final fraud report.
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| Item Description: | Originally Published InSnyder, H., Clifton, J., & Bowlin, W. (2012). Alchemy: An internal auditing case. IMA Education Case Journal, 5(4), Article 2. |
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