Martin’s Lounge: From Valuation Engagement to Fraud Examination

Abstract

This case utilizes a fictional bar to engage students in using accounting information to detect and monitor for asset misappropriation by employees. Students are given background information about Martin’s Lounge and a task of identifying asset misappropriation and estimating losses due to asset misappropriation. All information necessary to solve the case is provided in the case narrative and the six Excel files supplied with the case. Students can use generalized audit software (e.g., IDEA), Microsoft Excel, or data analytic/visualization software to solve the case. The case challenges students to consider how accounting data can be used to detect instances of asset misappropriation and the possible perpetrator of a fraud. The case can be assigned as an individual assignment or a small group assignment.