In Class #3.1 – Fraud risk
CBA Chartered Accountants is a successful mid-tier accounting firm with a large range of clients
across Canada. During 2011, CBA gained a new client, Health Care Group (HCG), which owns
100 percent of the following entities:
River Valley Centre, a private treatment centre
Gardens Nursing Ltd., a private nursing centre
Laser Care Limited, a private clinic that specializes in laser treatment of skin defects.
The year end for all HCG entities is June 30 t.
The audit partner for the audit of HCG, Tania Clark, has discovered that two (2) months before
the end of the financial year, one (1) of the senior nursing staff at Gardens Nursing Ltd. was
dismissed. Her employment was terminated after it was discovered that she had worked in