(Solution Download) 1 Could Tony be right Are employees defrauding the company


1. Could Tony be right? Are employees defrauding the company, or has the Russian Roulette finally bit the bullet?
2. What possible fraud activities are associated with declining cash flows?

Mikos Frederick, an immigrant from Ukraine, is a hotel owner in Las Vegas. Since his arrival in America during the 1960s, Frederick has built a very successful and popular hotel. Until recently, the hotel averaged $20 million in total revenue per year. Lately though, there have been rumors that Frederick?s hotel, the Russian Roulette, may be suffering unusual losses. Recently, several of Frederick?s key staff have quit, complaining about low wages and nonexistent benefits. In fact, the hotel?s main attraction, its popular restaurant chef Alec Klarinko, quit as well as the hotel?s headlining performer.

 







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