Journal of Business & Economics Research
COSOs Internal Control Framework discusses the components of internal control and how the control environment is the most important component. This paper analyzes how a non-existent control environment led to a massive expense account fraud at a regional airport. This fraud eventually led to the resignation and prosecution of the airports top four executives. The paper discusses the findings of the State Auditors investigation and outlines the red flags that should have been obvious to the external auditors. The paper concludes by discussing the changes made to the airports internal controls in the aftermath of the fraud.
Noland, Thomas G., Paul Metrejean.
"The Importance Of The Control Environment: Expense Account Fraud At Blue Grass Airport."
Journal of Business & Economics Research, 11 (2): 98-105.