The Anti-Fraud Collaboration, a joint effort of the Center for Audit Quality, Financial Executives International, the Institute of Internal Auditors and the National Association of Corporate Directors, has released the third in a series of case studies examining how to identify and stop accounting fraud in an organization.

The Kendallville Bank Case Study explores potential material fraud at a fictitious regional bank, revolving around the questionable accounting decisions of a star executive. The hypothetical scenario is designed to foster a better understanding of the importance of exercising skepticism as a participant in the financial reporting process at publicly traded companies.

Formed in 2010, the Anti-Fraud Collaboration promotes the deterrence and detection of financial reporting fraud through the development of educational opportunities, thought leadership, awareness programs and related resources.

The Anti-Fraud Collaboration has created a short video on the Center for Audit Quality's YouTube channel that introduces the case study and dramatizes it in a humorous animated video parodying a movie trailer, which you can also watch you below.

To support instructors teaching the case study, the Anti-Fraud Collaboration has created a discussion guide that is available by request. Instructors also can refer to the Collaboration’s series of videos on how to effectively lead a discussion using the Harvard Business School case-study method.

The Anti-Fraud Collaboration's previous case studies, Hollate Manufacturing, focused on the conditions that can generate and perpetuate fraud and misrepresentation in financial reporting, while the second, Carolina Wilderness Outfitters, discussed how to conduct an internal investigation when fraud is suspected in an organization.

For more from the Anti-Fraud Collaboration, visit www.antifraudcollaboration.com.