Page 669 - The Case Lab Book

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