Reference no: EM132694540

With a plot centered on a bribery allegation and questionable accounting oversight within the company, LDC Cloud Systems provides the reader a better appreciation of how fraud situations can unfold and then addressed, including the importance of strong board oversight. The case study explores actions of management and the board, along with the timeline of decisions after they uncover potential problems within the company. It also illustrates how complex accounting practices common in today's fast-changing business environment can make a company susceptible to fraud.

Question 1) What challenges are facing the accounting and internal audit departments in keeping up with a fast growing public company.

Question 2) Since the company's IPO three years earlier, it has "graduated" from the designation of an emerging growth company (EGC) to a large accelerated filer. How has this affected the external auditor?

Question 3) What evidence exists that a component in the fraud triangle is being compromised? Be specific about the behavior you have observed.

Question 4) What role should internal audit play in ensuring adequate controls?