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1Running head: CRISIS AT THE MILLCrisis at the MillNameInstitutionCourseDate2CRISIS AT THE MILLCrisis at the MillIntroductionAccording to Alvarez and Marsal (2015), WoolEx Mills, a leading exporter andmanufacturer of woolen textile had its operations in Northern India. An employee who hadalready left the company came and stated that during the time he was working in the company henoticed some irregular activities AM. Five members at the top of WoolEx Mills managementwere the ones who were reported to having involvement in some irregular activities whichcaused losses to the shareholders. These irregular activities included the following; possiblekick-backs which were received from suppliers as well as vendors, irregular practices in salesand irregular management of payables. All these caused financial statement fraud.Analysis of Fraud Scheme TypeA. Explain the process behind how frauds of this type are carried out. Provide a specificexample illustrating fraud of this typeAccording to (ACFE, 2015), financial statement fraud refers to wrong representation offinancial condition of a business deliberately, which is achieved by omission or misstatement offigures or disclosures in financial statements knowingly so as to deceive those who use thefinancial statements. There are five categories of financial fraud and they include; First, impropervaluation of assets, the companys management decided to increase the asset accounts so as toadd some str ...


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