Page 15 - Fake Ruby Teaching guide

Control 1: Wrekin Construction could have a board of

directors with at least one independent director. This

director could be a second authorization (signer) for major
transactions, such as the “payment” to Britannia

Management Services and Equatrek. An independent

director would have questioned these payments to

Britannia Management Services and Equatrek, since these

companies were owned by Unwin and were made at a

time when Wrekin were under such severe financial
pressure and unable to pay its bills. Anecdotal comments

also appear to support the unethical extraction of revenue

from Wrekin through undervalued sale of equipment.

Control 2: Require second signature on all major
expenditure. The problem with this is that if it is not a

Non-Exective Director acting as second signatory then it

would be likely that the second signatory would be

Ibbotson.