Running head.

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All The Queen Horses

Students Name

Institutional Affiliation
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1. What elements of the fraud triangle were present in this case? Identify each element and

use specific examples of Rita Crundwells actions to distinguish them.

           According to the film, Rita Crundwell lived a luxurious life that indicated she lived

beyond her pay grade. She made people believe that the awards she had won and her quarter

horse were generating sufficient income to sustain her lifestyle. The fraud triangle included: 

Compulsion or the motivation to engage in fraudulent activities. In Rita’s case, she engaged in

fraudulent activities because she had to sustain her luxurious life such as jewelry, vehicles,

different homes, and quarter horses.

The second fraud triangle is justification (All The Queen's Horses  2017). Rita was an excellent

record keeper of all the funds she stole and at the same time, she would elaborate all the deficits

in accounting making it difficult to notice that she was embezzling funds. 

Having a golden opportunity is the third fraud triangle. She had opportunities to conduct

fraudulent activities such as having sufficient knowledge of Dixon’s monetary records.

2. Identify some of the red flags that were present in the fraud.

           One of the red flags was her luxurious lifestyle beyond her net income. Secondly is letting

people believe that her awards and quarter horses financed everything she had.

3. Who were the auditors of the city of Dixon during the period in which Rita Crundwell

committed fraud? What role do you believe the auditors play in this fraud if any?

Explain.

           The existing auditors at the time Rita committed fraud were the city council. I believe

auditors played a vital role in the execution of these fraudulent activities because they didn’t

critically scrutinize the financial records of the city and hire external auditors to go through them

(All The Queen's Horses 2017). the body charged with governance of the city of Dixon had
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absolute responsibility of ensuring there were no fraudulent activities and also come up with

ways of preventing them.

4. Do you believe that the mayor and other city officials were partially responsible for the

fraud? Why or why not? 

           I also believe city officials took part in the fraud because they never detected any fishy

activities in the financial records of the city yet the role of the governing body is to prevent and

enhance responsibility in handling public funds.

5. What do you learn and how would this documentary help to prepare you to enter the

workforce?

           One of the vital lessons learned is that every government entity should constantly keep

checking its internal controls and update them. they should do this often especially in billing,

transaction cycles, taxes, and receipting. Secondly, a person should continuously undertake fraud

risk ascertainment and ensure that the management practices integrity from the top. 

 
 
 
 
 
 
 
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References

All The Queen's Horses (2017). Statutory Authority and HS2.

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