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a. Considering the nature of the relationship between Robatelli’s home office and its franchise owners, the company may be quite vulnerable to theft or fraudulent financial reporting committed by these franchise owners. Describe the three components of the fraud triangle and how each would relate to a franchise owner’s likelihood to defraud Robatelli’s.
b. Identify three types of fraud to which Robatelli’s may be susceptible. For each of your three responses, indicate whether the fraud is classified as management fraud, employee fraud, vendor fraud, customer fraud, or computer fraud. In addition, for each of your three responses, suggest an internal control that could be implemented to prevent or detect the potential fraud.
c. Design a suggested code of ethics for Robatelli’s. Your code need not be long; five or six bulleted items will suffice. You may find guidance by searching the Internet for examples.
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