Cray Eddy case study

1) Summarize the facts of the case.

2) Re-read Chapter 4 -Preventing Fraud- in the text or online with emphasis on what should be in a good system of internal controls and what controls were missing at Crazy Eddie: segregation of duties,authorization, physical controls, physical checks, independent checks, and documentation (COSO).

Did Crazy Eddie understand how to create a culture of honesty, openness, and assistance ?

Did Crazy Eddie understand the importance of proactive fraud auditing ?

How could the Crazy Eddie fraud been detected earlier ?

Who were the victims of the Crazy Eddie fraud ?

What happened to Eddy and Sammy Antar ?

What did you learn from the case ?