Stealing Students' Lunch Money for a First-Class Lifestyle: A Case Study on Fraud in Education.

Fraud cases used in accounting often focus on financial statement frauds affecting large businesses—while asset misappropriation frauds and those affecting governments, nonprofits, and educational organizations receive less attention. This case describes how Judith Oakes stole approximately $3.1 million of lunch money from the Rialto Unified School District. This illustrative example demonstrates how weak controls and a capable employee led to a massive fraud wherein close relationships with administrators allowed the fraudster to perpetrate the fraud for many years. The purpose of this case is to provide a detailed example of an occupational fraud, exposing students to different theories explaining why people engage in fraud beyond the fraud triangle. While analyzing the case, students evaluate the fraud using common fraud theories including the fraud triangle (including several adaptions) as well as economic, psychological, and sociological theories. Furthermore, students will assess and design internal controls to detect, prevent, and deter fraud. [ABSTRACT FROM AUTHOR]