In early 2017, the company started the process of being listed on the ASX. They appointed Wells
Partners as underwriters of the IPO. The underwriters of the IPO got a lead from an insider of
the company who warned them on the quality of the financials of the company. Wells Partners has
appointed you to investigate the matter as part of their IPO due diligence process.
Follow the approach of forensic accounting and fraud examination in the case study.
You are required to do the following for 25 marks. This is an individual assignment not a group
1. Draw the fraud triangle in this case and explain the factors in the case study that can
increase the chances of management fraud. (10 marks)
2. Analyse the historical financial information and the relevant macro and micro factors to
determine whether or not management has manipulated the earnings. (10 marks)
3. Determine what additional information you would require to establish the magnitude of
fraud committed by the management. (5 marks)
For each of the above tasks you are required to provide arguments and evidence to support your
claims. The document should be written professionally and presented in a report format in no
more than 1,500 words. Graphs, charts and tables will not be counted towards the word limit.
The assignment due date is no later than 4pm, Friday, 25th of Oct, 2019 (i.e., Week 12).
Submission details: A hardcopy of the assignment should be submitted via the department
assignment box on Level 3 Building H Caulfield Campus. Also, a soft copy of the assignment
should be submitted via the Moodle site.