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Anti-Fraud Collaboration Releases Third Case Study

Tuesday, July 28, 2015

“Kendallville Bank” fosters understanding of skepticism in financial reporting 

Washington, DC – The Anti-Fraud Collaboration continues to promote diligence in financial fraud deterrence and detection with the latest installment of its successful series of case studies.

The Kendallville Bank Case Study explores potential material fraud at a fictitious regional bank. With a plot revolving around the questionable accounting decisions of a star executive, this hypothetical scenario is designed to foster a greater 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 consists of the Center for Audit Quality, Financial Executives International, the National Association of Corporate Directors, and The Institute of Internal Auditors. The Collaboration promotes the deterrence and detection of financial reporting fraud through the development of educational opportunities, thought leadership, awareness programs, and related resources.

Kendallville Bank is the Collaboration’s third case study. The first, Hollate Manufacturing, focused on understanding the conditions that can generate and perpetuate fraud and misrepresentation in financial reporting. The second, Carolina Wilderness Outfitters, is intended to facilitate a discussion about how to conduct an internal investigation when fraud is suspected in an organization. The series of case studies is designed for all members of the financial reporting supply chain.

“The Anti-Fraud Collaboration’s case studies have proven themselves to be highly valuable tools in building awareness of the need to mitigate the risk of financial reporting fraud,” said Center for Audit Quality Executive Director Cindy Fornelli, on behalf of the Collaboration. 

To support instructors teaching the Kendallville Bank Case Study, the Anti-Fraud Collaboration has published a separate discussion guide, 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, upon which all three case studies are based. The videos show key aspects of instruction — such as how to prepare for case discussions, how to lead them, and how to respond to challenging moments.

The Anti-Fraud Collaboration has also created a short, lively video that introduces the case study and brings it to life in cinematic fashion. The video can be found at the Center for Audit Quality’s YouTube channel. 

 “Educating financial executives on how to detect and prevent fraud is a direct outgrowth of our mission,” said Paul Chase, interim chief executive officer and president, Financial Executives International. “These case studies provide a creative and interesting way to share knowledge among financial executives and their teams, ultimately helping protect companies, their customers and their investors.”

For more insights on the Collaboration’s case studies, watch the latest installment of the CAQ’s “Profession in Focus” video series. The episode features Michele Hooper, President and CEO of The Directors’ Council, Governing Board Member at the Center for Audit Quality, and Co-Chair of the Anti-Fraud Collaboration’s Steering Committee. In the video, Hooper discusses how the case studies are based upon extensive input from a wide variety of experts. Thus, she notes, they “are a useful addition to the arsenal of fraud tools that we have brought to the marketplace.” 

For more from the Anti-Fraud Collaboration, visit

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About the Anti-Fraud Collaboration

The Anti-Fraud Collaboration represents the collaborative efforts of the Center for Audit Quality, Financial Executives International, The Institute of Internal Auditors and the National Association of Corporate Directors, organizations that actively engage in efforts to mitigate the risks of financial reporting fraud. The Collaboration’s goal is to promote the deterrence and detection of financial reporting fraud through the development of thought leadership, awareness programs, educational opportunities, and other related resources specifically targeted to the roles and responsibilities of participants across the financial reporting supply chain.

For Further Information

Center for Audit Quality
Erica Hurtt, Director of Communications

Financial Executives International
Lili DeVita, Vice President, Marketing and Communications

National Association of Corporate Directors
Henry Stoever, Chief Marketing Officer

The Institute of Internal Auditors 
Robert Perez, Manager, Media Relations