Page 9 - Fake Ruby Teaching guide

Question 1
There were two separate, although related, frauds committed by the

management at Wrekin Construction. Describe each of these frauds in
detail. As part of your descriptions, identify what you think is the
apparent motivation for each fraud.

FRAUD 1: The Insolvency Service found that in the weeks before
the gem was transferred to Wrekin, Unwin acknowledged in a

meeting with the company’s former auditors that there were
uncertainties about the gem’s value. Furthermore, Ibbotson, Wrekin’s

finance director, was aware of those uncertainties, but nevertheless
told Wrekin’s new auditors that £11 million was a genuine market
value. In addition, Ibbotson and Wrekin’s managing director