Description: Right now the United Auto Workers is involved with negotiations with the automakers, the contracts having expired September 14. Given this, the timing of this past week’s announcement that Vance Pearson, a member of the UAW’s executive board, had been arrested on charges of embezzeling union funds, is quite unfortunate. The union responded that charges are not the same as a conviction and that a number of facts have been misconstrued.
Date: September 12, 2019
1) Were you ever working at a job where someone was accused of stealing funds?
2) If you were asked to implement controls to prevent board members from committing fraud, what might be some things you would recommend?
3) In chapter three of Wiley’s Auditing: A Practical Approach , we learn about the fraud triangle (Figure 3.4). Take a look at Figure 3.4 and discuss how the three sides of the triangle may be applicable here.