The Anti-Fraud Collaboration has developed and published a fictitious case study of a potential material fraud to serve as a training resource and discussion starter for audit committees, financial executives, internal auditors, and external auditors.
The “Hollate Manufacturing Case Study” and a companion discussion guide provide a roadmap to interactive discussions that are meant to inspire dialogue on what can be done to mitigate the risk of fraud. The case study sets the scene at a company that manufactures products for the home construction industry, profiling CEO Jack Brennahan along with key members of his management team and the board of directors. The company is following a growth-through-acquisition strategy, even as it struggles through a downturn, leading to sales pressure on division heads. Then Brennahan receives a call from the company’s external auditor and audit committee chairman reporting the discovery of accounting regulators in a window products division.
