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An Empire Built On A Lie €“ The Peregrine Fraud: A Case Study On Confirmations As Audit Evidence

Author

Listed:
  • Maria H. Sanchez,
  • Kathleen Dunne

Abstract

This study examines the real world case of the Peregrine fraud. In this fraud, the CEO Russell Wasendorf, Sr. duped the auditors and the public for years. Wasendorf was able to carry out a fraud using an unsophisticated scheme involving falsified bank statements and falsified audit evidence. Only when an electronic confirmation services was used by the auditors did the fraud unravel. This case provides interesting discussion points for an auditing, fraud detection and deterrence, forensic accounting or ethics class. Students typically need one to two hours of time outside of class to complete the case and instructors should budget approximately one to one and a half hours of class time to discuss the case after the students have completed it

Suggested Citation

  • Maria H. Sanchez, & Kathleen Dunne, 2017. "An Empire Built On A Lie €“ The Peregrine Fraud: A Case Study On Confirmations As Audit Evidence," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 8(1), pages 49-55.
    • Handle: RePEc:ibf:rbfstu:v:8:y:2017:i:1:p:49-55
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    Citations

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    Cited by:

    1. Emm, Ekaterina E. & Gay, Gerald D. & Shen, Mo, 2020. "Futures commission merchants, customer funds and capital requirements: An organizational analysis of the futures industry," Journal of Commodity Markets, Elsevier, vol. 18(C).

    More about this item

    Keywords

    Audit Evidence; Confirmations; Fraud;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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