The Kendallville Bank Case Study explores potential material fraud at a fictitious regional bank. With a plot revolving around the questionable accounting decisions of a key executive, the hypothetical scenario is designed to foster a greater understanding of the importance of exercising skepticism in promoting promote diligence in financial fraud deterrence and detection.
“Educating financial executives on how to detect and prevent fraud is a direct outgrowth of our mission,” said Paul Chase, interim chief executive officer and president of Financial Executives International. “These case studies provide a creative and interesting way to share knowledge among financial executives and their teams, ultimately helping protect companies, their customers and their investors.”
The Anti-Fraud Collaboration has also created a video that introduces the case study and brings it to life. The video can be found at the Center for Audit Quality's YouTube channel.
Formed in 2010, the Anti-Fraud Collaboration includes the Center for Audit Quality, Financial Executives International, the National Association of Corporate Directors, and The Institute of Internal Auditors.
Kendallville Bank is the Collaboration's third case study. The first, Hollate Manufacturing, focused on understanding the conditions that can generate and perpetuate fraud and misrepresentation in financial reporting. The second, Carolina Wilderness Outfitters, is intended to facilitate a discussion about how to conduct an internal investigation when fraud is suspected in an organization. The series of case studies is designed for all members of the financial reporting supply chain.
“The Anti-Fraud Collaboration's case studies have proven themselves to be highly valuable tools in building awareness of the need to mitigate the risk of financial reporting fraud,” said Center for Audit Quality Executive Director Cindy Fornelli.
For more insights on the Collaboration’s case studies, watch the latest installment of the CAQ's “Profession in Focus” video series. The episode features Michele Hooper, president and CEO of The Directors’ Council, Governing Board Member at the Center for Audit Quality, and co-chair of the Anti-Fraud Collaboration’s Steering Committee. In the video, Hooper discusses how the case studies are based upon extensive input from a wide variety of experts. Thus, she notes, they "are a useful addition to the arsenal of fraud tools that we have brought to the marketplace.”
The Collaboration’s goal is to promote the deterrence and detection of financial reporting fraud through the development of thought leadership, awareness programs, educational opportunities, and other related resources specifically targeted to the roles and responsibilities of participants across the financial reporting supply chain.
For more from the Anti-Fraud Collaboration, visit http://antifraudcollaboration.com/.