Page 749 - 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