Case in Point

Town Mark Ltd. of India retained this accountant and fraud examiner to document and streamline the information systems in preparation for ISO certification. But like the proverbial Pandora's Box, when he and others lifted the lid off the accounts, scores of errors and issues tumbled out. See how he and the auditors found a fraud based totally on manipulation of a computerized management information system and the lessons they learned.  

 

This article is excerpted and adapted from "Computer Fraud Casebook: The Bytes that Byte," edited by Joseph T. Wells, CFE, CPA, to be published at the end of 2008 by John T. Wiley & Sons Inc. 

 

Managing Director Paul Right was the brain and the face of Town Mark Ltd. From meeting distributors, dealers, shopkeepers, mall managers, and suppliers, to interacting with shareholders, he was at the forefront of all business interactions. 

 

Always immaculately dressed, he loved ostentatious ties with equally flashy tie pins, often with a red ruby or a green emerald in its center. His wardrobe was impressive, with a different suit for every day of the week. Paul never looked ruffled - he dyed his hair and gelled it neatly into place. He worked hard for the company and loved to sacrifice his time, his earnings, and his future for its welfare. A day wouldn't pass without him declaring this to an audience - whether to employees in a staff briefing, to visitors in a chance encounter, or to the directors in a board meeting. He seldom spoke about his family but always had a good word to say about the business. 

 

Town Mark Ltd. is a well-known and respected consumer goods public company in India with eight branches, 12 depots, and five main distributors. It grew from its early beginnings in a remote factory in the middle of nowhere by using outsourced production facilities spread across the major regions in the country. The company has a network of dealers within and outside India.