Page 671 - The Case Lab Book

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,