Read the Case Study: Frequent Flier’s Fraud Crashes beginning on page 179 in the textbook and complete the following:
Answer the following questions:
What red flags existed that could have detected this fraud? (List and explain at least two)
What controls could have prevented this fraud earlier? (List and explain at least three)
When answering the above questions, remember that red flags are things that should have been noticed by an average person within the company, therefore the controls to detect the fraud should not be the same as the red flags.
What red flags existed that could have detected this fraud and what controls could have prevented this fraud earlier?
