11-78 LO 2, 3, 4 The Auditing in Practice feature “Weak Internal Con-
trols, Unethical Decisions, and a Fictitious Vendor at Baird Pro- ducts” introduced you to an example of a purchasing manager who used a fictitious vendor to accomplish a fraud in the acquisition and payment cycle. Using appropriate sources, locate an example of another such case. If you perform an electronic search, you might want to use the search terms fraud and fictitious vendor. Answer the following questions:
a. What was the company involved, and who was the fraudster?
b. How was the fraud perpetrated?
c. What was the dollar value of the loss?
d. What was the resolution of the case; for example, did the fraudster get fined or jailed?
