1. El Sauvé: The Case of the California Con
Dr. Kingsley Olibe, Assistant Professor of Accounting

2. El Suave

3. Fraud Triangle
Motive
Opportunity
Rationalization

4. El Sauve
Form a group and make each person responsible for the clues for one or two characters:
Buddy Friendly
Annie Flowers and Joey Clef
Tammie Salazar and Sally Melbourne
Fred “Flash” Franklin
Your job is to use the clues associated with the six El Sauve employees and decide:
Who is stealing the money?
How is it being stolen?
What could you do to stop the theft?

5. The Game
Step 1 – Read the descriptions of each character in your hand out pages In your groups, decide who you think might be stealing?
Step 2 – The Clues
Each person should gather the Step 2 Clues from their character(s).
Read your clues and provide a summary to your group members.
You may record your assessment of the clues for each character on page 5.
Hot clues might be important to the case.
Cold clues are not important.
Decide as a group who you think is responsible

6. The Game Continues Decide as a group who you think is responsible now.
Step 3 – More Clues
Send one person to gather the Step 3 clues from each character
Have someone from your group read each clue to the others
You may record you assessment of those clues on page 5. Hot clues might be important to the case. Cold clues are not important
Decide as a group who you think is responsible now.

7. El Suave

8. INTERNAL CONTROL CASH
Internal Control consists of the plan of organization and all the related methods and measures adopted within a business to:
 Safeguard/protect assets from employee theft, robbery, and unauthorized use. 
Enhance the accuracy and reliability of its accounting records—reducing errors and mistakes and irregularities.

9. Step 4 Who is in a position to have access to the money?
What procedures are in place to make sure that money is handled appropriately?
What steps could the owner take to make sure this does not happen again?

10. Principles Of Internal Control
Assignment Of Responsibilities
Separation Of Duties
Accountability Of Assets
Bonding Of Employees Who Handle Cash  
Rotating Employees’ Duties And Requiring Employees To Take Vacations
Establishment Of Petty Cash (Imprest Accounting System)

11. What Do Accountants Do?
Prepare financial statements and balance sheets
Plan and implement Internal Control Systems
Determine tax obligations – local, federal and state
Identify the cost and set prices for products and services
Determine and distribute dividend to share holders
Prepare information for use in decision-making