Coupon accounting abuse. Required: a. Discuss whether the situation described can happen to a company with a

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Coupon accounting abuse. Required:
a. Discuss whether the situation described can happen to a company with a good control environment.
b. Describe any steps a company could take to prevent such abuse.
c. List those parties who might be harmed by this situation.
d. Do you consider this example to be management fraud or employee fraud? Describe how it fits the definition of your choice.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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