The Grand Teton Candy Company case has four frauds committed by two perpetrators. The perpetrators are not in collusion. Each perpetrator has separate motivations; in fact, two of the frauds come close to canceling each other on the financial statements.
Appendix A offers a suggested grading rubric for the reports handed in by the students. The possible points can be divided equally among the four frauds. For example, the category “brief statement of conclusions of fraud/no fraud” is four points, one point for identifying each of the four frauds.
The following frauds are included in this case.1
Darla Newman, Manager of Purchasing, Receiving, Accounts Receivable, and Inventory.
Darla's husband, Max Newman, purchased John Driggs' electrical business when John decided to devote his full energies to GTCC (see Student Assignment, Appendix A, “The People of Grand Teton Candy Company,” in the Case). It seemed like a good purchase at the...