Embezzlement at the University of California: An Instructional Case in Employee Fraud.

This case introduces students to a common type of employee fraud and illustrates how the professional guidance applies in that situation. The case can be used to integrate coverage on the following audit topics: the auditor's consideration of fraud in a financial statement audit; the auditor's consideration of the internal control structure; audit materiality; and the design of substantive audit tests. In addition, the case can be used to illustrate the limitations of certain routine audit procedures in terms of their usefulness in fraud detection and to introduce students to nonroutine audit procedures that are more effective for fraud detection purposes. The case is primarily intended for use in an undergraduate auditing course, but could also be used in connection with coverage of governmental auditing topics in either an advanced auditing course or a governmental accounting course.