ARTÍCULO
TITULO

The Atlanta Public Schools Scandal: Educator Fraud, RICO, And COSO

Jan Colbert    

Resumen

As the new Chief Audit Executive (CAE) of the school district in Big City, you are interested in the lessons regarding internal control which can be learned from educator fraud (cheating) which occurred in the Atlanta Public Schools (APS) scandal.  You discover that educators erased students? wrong answers and changed them to right answers, that educators made false certifications of test results, and that tests were opened (and resealed) prior to administration.  The cheating went on for years.  Multiple investigations ensued and the Georgia Bureau of Investigation eventually became involved.  About 150 educators resigned, retired or lost their appeals to have their jobs reinstated. Educators who chose to go to trial were prosecuted under the RICO statute (Racketeer Influenced and Corrupt Organizations Act).  The APS eventually begun making remediation efforts for the students impacted by false test results.  To attempt to prevent such cheating and fraud from occurring again, you relate the facts of the case to both the COSO internal control framework and to the fraud triangle. As CAE, you will use this information to instruct the internal auditors in your department.