Audit firm sued by Dixon for not detecting fraud - WREX.com – Rockford’s News Leader

Audit firm sued by Dixon for not detecting fraud

Posted:
By Samantha Jeffreys - email
Rita Crundwell - File Rita Crundwell - File
DIXON (WREX) -

Officials with the City of Dixon are suing CliftonLarsonAllen, the firm in charge of auditing the city's books, for not detecting the fraud allegedly carried out by its former comptroller.

Rita Crundwell pleaded guilty to one count of wire fraud for embezzling over $53 million from Dixon last year. Now, the city is claiming CliftonLarsonAllen should have noticed things such as bogus invoices while auditing the city's books, processing checks, and even preparing Crundwell's tax returns.

However, the firm claims it was not required to do testing that could have revealed the fraud.

Crundwell is scheduled to be sentenced on the federal count of wire fraud on February 14.

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