MindBridge Case Study C


The Fraud Case

Bauen Inc. is an innovative construction company located in Northern Canada. Under the
leadership of CEO Mike Smith, the company employs staff of 150 and is relatively successful.
Even though the company experiences steady growth in recent years, competition is fierce
and margins are shrinking.
The company recently raised some venture capital to accelerate its growth. To meet
contractual obligations Bauen Inc. is required to meet a number of KPIs of which most a tied
to EBITA. During the risk-assessment process the audit team identified unusual ratios around
plant and machinery.

The General Journal

Find attached the General Journal of Bauen Inc. (GJ_Case_Study_C.xls). The total balance of
the GJ is just above $ 4.6 million. The FY start date is 1 January. Download the data file to
your computer. Please note that the materiality for this audit engagement is $45,000. Please
also note that bookkeeping is regularly done on weekends.


Single Spaced Size 12 Times New Roman font

Explain your findings based on the Excel file

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