1. Do you believe that auditors should be held liable for failing to discover fraud in situations...
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2. Discuss the red flags that existed in the ZZZZ Best case and evaluate Ernst & Whinneys efforts with respect to fraud risk assessment. Do you think Ernst & Whinneys relationship with ZZZZ Best influenced risk assessment and the work done on the audit?
3. These are selected numbers from the financial statements of ZZZZ Best for fiscal years 1985 and 1986:
What calculations or analyses would you make with these numbers that might help you assess whether the financial relationships are reasonable? Given the facts of the case, what inquiries might you make of management based on your analysis?
4. What factors do you think motivated Minkow to return to his evil ways after becoming a respected member of the community following his release from prison in the ZZZZ Best fraud?
5. Using Kohlbergs stages of moral development, how would you characterize Minkows actions after being released from prison in the ZZZZ Best fraud? Explain the effects of Minkows actions on the stakeholders who relied on him to act in a professionalmanner.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...
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Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-0077862213
3rd edition
Authors: Steven Mintz, Roselyn Morris