ALL THE QUEENS HORSES ASSIGNMENT
Internal Controls and the Prevention of Fraud
Since understanding and implementing internal controls is important for all types of organizations, it is one
of this course’s Student Learning Outcomes. Many people are unaware of internal controls. And for many
that have heard the term ‘internal controls’ they don’t understand what they are and how critical they are in
preventing fraud. As a business professional your knowledge of internal controls will be an integral and
valued resource. Oftentimes you will need to explain internal controls to colleagues, supervisors, clients, etc.
This assignment will give you the opportunity to solidify and apply your knowledge of internal controls to an
actual fraud.
Is it possible for one person to steal over $53 million from a city with an annual budget of less than $10
million? Yes. The Rita Crundwell story provides a cautionary tale for why internal controls are important.
1. Read Chapter 6 in your textbook, specifically pages 245-250.
2. Watch the documentary film All the Queens Horses (about 1 hour and 10 minutes). The documentary’s
website lists ways to watch the film: https://www.allthequeenshorsesfilm.com/see-the-film. If you already
subscribe to one of the streaming options listed on the website you can watch for free, otherwise there is a
nominal fee. Alternatively, you can watch the documentary for free on tubitv.com.
3. The city council of a nearby municipality is aware of what happened in Dixon, Illinois. They want to ensure
that nothing similar happens in their town. However, none of the city council members have an accounting
background or expertise in internal controls or fraud. Therefore, they have hired you to prepare a formal
memorandum explaining:
• How the fraud in Dixon, Illinois was perpetrated.
• What components contribute to an increased risk of fraud occurring.
• All types of internal controls, why they are important, and how they work.
• What could have prevented the fraud in Dixon, Illinois.
• What internal controls would you recommend for municipalities to have in place.
When preparing your formal memorandum you should use complete sentences, proper grammar and
punctuation, and correct spelling. Plagiarism is prohibited. This link provides Steps to Avoid Plagiarism:
https://writingcenter.uagc.edu/steps-avoiding-plagiarism. Plagiarism will result in a grade of zero.
Below are some useful resources for preparing your formal memorandum:
• Introduction to Prewriting (Invention)
https://owl.purdue.edu/owl/general_writing/the_writing_process/prewriting/index.html
• Tone in Business Writing
https://owl.purdue.edu/owl/subject_specific_writing/professional_technical_writing/tone_in_business_
writing.html
• Parts of a Memo
https://owl.purdue.edu/owl/subject_specific_writing/professional_technical_writing/memos/parts_of_
a_memo.html
