Frye Fraud Case

Week Tickets Sold (#) Sales ($) Total Sales ($)

12/11/2016 3,178 $2,043,803 $2,043,803 12/18/2016 2,215 $2,738,272 $4,782,075 12/25/2016 240 $199,300 $4,981,375 12/31/2016 2,155 $3,132,275 $8,113,650 01/08/2017 690 $1,281,315 $9,394,965 1/15/2017 5,102 $3,372,822 $12,767,787 1/22/2017 1,100 $2,483,927 $15,251,714

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Month Buyers Registered Talent Registered Buyer Login (%)* Talent Login (%)* Unique Buyers Submitting Offers (%) Unique Talent Receiving Offers (%) Number of Offers Value of Offers Number of Bookings Value of Bookings

May 77 47 100.00% 100% 21% 14% 27 $361,900 5 $77,000 June 180 29 84.00% 52% 24% 16% 91 $1,028,293 27 $285,750 July 224 36 81.00% 57% 26% 31% 494 $4,958,392 92 $1,290,900 August 197 59 67.00% 51% 33% 42% 2985 $42,493,283 745 $9,595,743 September 475 104 71.00% 58% 27% 27% 3195 $34,283,289 429 $8,247,568.00 October 829 298 82.00% 61% 28% 33% 3746 $37,282,192 835 $9,976,299.00 November 1,102 576 83.00% 63% 31% 32% 5847 $79,283,382 1485 $19,532,344.00 December 2,392 1,029 85.50% 67% 36% 34% 7936 $88,127,936 1984 $21,593,220.00

*1 login (min) per month

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Balance Sheet Fyre Media Inc

As at 1 January 2017

1-Jan-17 Assets

Cash and Cash Equivalents Cash Accounts $4,561,882.14 Total Cash and Cash Equivalents$4,561,882.14

Accounts Receivable Accounts Receivable $18,084,866.36 Total Accounts Receivable $18,084,866.36

Property, Plant and Equipment Computer Equipment $40,636.97 TV & AV Equipment $75,298.25 BlackPoint Exuma Land $8,400,000.00 Transportation Equipment $198,273.28 Total Property, Plant and Equipment$8,714,208.50

Total Assets $31,360,957.00

Liabilities and Equity

Liabilities

Current Liabilities Accounts Payable $1,014,651.69 Total Current Liabilities $1,014,651.69

Non-Current Liabilities Investor Returns $10,649,000.00 Accounts Payable $3,836,428.84 Total Non-Current Liabilities $14,485,428.84

Total Liabilities $15,500,080.53

Net Assets $15,860,876.47

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Balance Sheet Fyre Bookings

As at 1 January 2017

1-Jan-17 Assets

Cash and Cash Equivalents Signature Bank 1 $418,999.00 Signature Bank 2 $2,723,884.14 Total Cash and Cash Equivalents$3,142,883.14

Accounts Receivable Accounts Receivable $3,257,483.39 Total Accounts Receivable $3,257,483.39

Property, Plant and Equipment Computer Equipment $40,636.97 TV & AV Equipment $75,298.25 Total Property, Plant and Equipment$115,935.22

Total Assets $6,516,301.75

Liabilities and Equity

Liabilities

Current Liabilities Accounts Payable $140,724.23 Total Current Liabilities $140,724.23

Non-Current Liabilities Investor Debt Returns (Aug 2019)$3,149,000.00 Total Non-Current Liabilities $3,149,000.00

Total Liabilities $3,289,724.23

Net Assets $3,226,577.52

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Balance Sheet Fyre Festival

As at 1 January 2017

1-Jan-17 Assets

Cash and Cash Equivalents Chase Bank 1 $1,418,999.00 Total Cash and Cash Equivalents$1,418,999.00

Accounts Receivable Accounts Receivable $14,827,382.97 Total Accounts Receivable $14,827,382.97

Property, Plant and Equipment BlackPoint Exuma Land $8,400,000.00 Transportation Equipment $198,273.28 Total Property, Plant and Equipment$8,598,273.28

Total Assets $24,844,655.25

Liabilities and Equity

Liabilities

Current Liabilities Accounts Payable $873,927.46 Total Current Liabilities $873,927.46

Non-Current Liabilities Investor Returns (May 2017) $7,500,000.00 Accounts Payable $3,836,428.84 Total Non-Current Liabilities $11,336,428.84

Total Liabilities $12,210,356.30

Net Assets $12,634,298.95

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Page 1 of 3

I. Title: Frye Fraud: A Case Exploring the Dark Triad Personality

II. Introduction

The AICPA Pre-certification Core Competency Framework provides detailed explanations of the following:

Project Competencies:

§ Risk assessment, analysis, and management o Assess, analyze, and manage risk using appropriate frameworks,

professional judgment, and skepticism for effective business management.

§ Reporting o Identify the appropriate content and communicate clearly and

objectively to the intended audience the work performed and the results as governed by professional standards, required by law, or dictated by the business environment.

§ Governance perspective o Understand the legal and regulatory environments affecting an

organization and their effects on an organization’s operations, internal controls, and enterprise risk management. Recognize an organization’s social and environmental responsibilities.

§ Professional behavior o Practice in a manner that is consistent with the character and high

standards set by the AICPA and the accounting profession. Demonstrate a work ethic and respect for diversity, as well as a commitment to continuously acquire new personal and professional skills and knowledge.

§ Decision making o Objectively identify and critically assess issues and use professional

judgment to develop appropriate decision models, identify and analyze the costs and benefits of alternative courses of action and recommend optimal solutions.

Since graduating from your MS in Accounting degree program, you have been working as a second-year senior fraud examiner for the prestigious accounting firm of HLR, Inc. The principals, Honer, Reich, and Sweeting, are CPAs and Certified Fraud Examiners (CFEs). They have worked in the industry since 1999 and are well known for the high-profile cases they have brought to justice.

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You attended the weekly Monday morning meeting led by one of the three principals; this week Honer led the meeting. He announced the annual conference of the Association of Certified Fraud Examiners (ACFE) was scheduled for next year in Austin, TX. Further, the ACFE conference planning team contacted HLR, Inc. asking if the company had any interest in providing guest speakers for the conference. Absolutely, said Honer. He committed to providing the conference with guest speakers for the concurrent sessions and a report for conference attendees to gain a better understanding of the most comprehensive fraud case the firm has encountered in recent years. For confidentiality and privacy issues, Honer explains he will select the case at the end of the year and one that has already gone to trial and been adjudicated.

Eager to advance your career, you ask to be assigned to high-profile fraud cases in hopes that one will be selected for presentation at ACFE’s next annual conference.

III. Steps to Completion

Step 1: Read the case study file in the Project 1 folder: The Frye Fraud: A Case Exploring the Dark Triad Personality. Be sure to download and review the four files in Appendix A.

Step 2: Review the grading rubric in the Project 1 folder to learn how your deliverable will be graded.

Step 3: Review APA Style, 7th ed because your report will be graded in strict APA Style format.

Step 4: Answer the questions at the bottom of the case study file on page 10 in report format, not in numbered answers.

For example, your report may include these subheadings or other relevant titles: § Behaviors and characteristics § Fraud risks of dark triad elements § Red flags and due diligence § Mitigate risk of fraud

Step 5: Submit your draft deliverable to the UMGC Writing Tutors. Edit your draft to incorporate feedback from the writing tutors.

Your report should NOT look like this: Question 1: Answer, Question 2: Answer, Question 3: Answer, and Question 4: Answer.

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Step 6: Submit your corrected draft to your assignment folder and review the Turnitin Similarity Score. If the Similarity Score is higher than you prefer, you may need to add more citations.

Step 7: In Turnitin, review grammatical suggestions by clicking the purple ETS button. Make edits to improve your final deliverable.

Step 8: Review the grading rubric one last time to ensure you have met the grading criteria.

IV. Deliverables 1. MS Word Report in APA Style, 7ed.

a. If you are unsure of APA Style, this sample paper may be helpful. Also, APAStyle.APA.org provides a plethora of resources to learn APA.

b. The approximate length of your report will be 10-12 pages assuming you used APA Style. The title page, reference list, and any appendices may extend the report length. The body of the report must be no less than 10 pages in APA Style.