Author(s): Cynthia B. Lloyd
This case study describes a defalcation that most likely occurred due to mutual cross-business unfamiliarity among accountants. Rather than focusing on just accounting incompetence as the contributing factor in fraudulent activity, removing cross-industry silos is imperative in the current accounting profession. Hence, this case explores fraud through a multi-lensed approach that incorporates qualitative factors utilized in the forensic accounting profession for detecting financial offenses. Additionally, I look at potential weaknesses in regulatory oversight across a series of at least three groups of accountant and regulatory bodies. Accounting students are rarely offered a behind the scenes exposure to the role of forensic accountants in the bankruptcy context, hence this study gives students insights about high regard given to the profession of forensic accounting in the bankruptcy arena. This case, which was drawn from a series of facts published in the popular press, offers a proverbial workshop in the complexities surrounding accounting failure. In this presentation of the unforeseen progression long-term defalcation, readers are better prepared to utilize their research, communication, and critical thinking skills for addressing real issues they might encounter in the accounting profession after graduation.