Case 3: Loyalty and Fraud Reporting (a GVV case) Note Paper needs to be original


1. Analyze the facts of the case using the Fraud Triangle. Would you characterize what Ethan Lester did as a failure of internal controls? Explain.

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2. Assume Ethan sets a meeting with Vick in two days to follow-up on his request. Vick has decided not to be part of the cover-up. Use the GVV framework to help Vick prepare for the meeting.

Consider the following:

• What should Vick say to counteract Ethan’s request?

• How might Vick’s intended action affect the company and the external auditors?

• Who can Vick go to for support?

3. Assume Ethan gets upset after the meeting and decides to fire Vick. He tells Vick to leave quietly or Ethan will disclose the $20,000 fraud. What should Vick do next?

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