Page 11 - Fake Ruby Teaching guide

Question 2

It was inevitable that the fraud would be found out?

Answer: Unwin and Ibbotson used fictitious asset

valuation entries, in particular a fake valuation of the Gem
of Tanzania and two sham payments, to conceal the true

financial position of Wrekin Construction. The gem might

have stayed out of sight were it not for the recession. The

business ran out of money and the company was put into

administration and its assets lined up to be sold off.

Any auditor worth their salt would have questioned the

veracity of such a unique asset in the accounts. However,