Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Spain’s Princess Cristina was questioned in court over whether she and her husband illegally used company funds for personal expenses, including lavish parties at their modernist Barcelona mansion. Her her husband, Inaki Urdangarin, former Olympic handball medalist turned businessman, is accused of defrauding regional governments of millions of euros of public money.

1. Summarize the allegations, including the not-for-profit organization involved. What red flags of fraud do you see?
2. In November 2013, the judge ordered properties belonging to the king’s son-in-law be impounded. What was the purpose of this?
3. What is the alleged amount of the fraud?
4. Why is this scandal considered to be so devastating for Spain at this particular time?

Reilly, J. (2014) Spain’s Princess Cristina in court to face questions over a ‘corruption scandal involving her husband who defrauded local governments of millions of euros,’ Mail online, Feb. 8 (Retrievable online at

Burridge, T. (2014) Spain’s Princess Cristina in court over corruption case. The BBC, Feb. 8 (Retrievable online at

BBC Staff (2013). Spanish royal’s property impounded in corruption case. The BBC, Nov. 4 (Retrievable online at