Hold Your Horses! Could Tighter Reins Have Prevented a Landmark Fraud?

Overview

What can we learn from one of the largest municipal frauds in U.S. history? Rita Crundwell stole nearly $54 million from the citizens of Dixon, Illinois over the course of two decades. This course examines circumstances that allowed this landmark fraud to occur. We will explore internal control deficiencies and other circumstances that hindered prevention or timely detection of Rita's scheme.

Objectives

• Understand factors that allowed the Dixon fraud to occur
• Identify internal controls that could have prevented the fraud
• Recognize lessons that CPA firms should learn from this case
• Understand the intricacies of independence
• Distinguish best practices for government agencies and other organizations that utilize employees

Highlights

• Key aspects of Rita Crundwell's theft
• Internal controls that could have prevented the theft
• Internal controls that could have detected the theft in a timely manner
• Independence in both fact and appearance
• Lessons for CPA firms
• Lessons for government agencies