In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges
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In 2003, the Securities and Exchange Commission released an Accounting and Auditing Enforcement Release (AAER) describing charges and discipline against five former executives of Homestore, Inc., including the company’s former CEO and CFO. The charges claim the executives developed a scheme to inflate advertising revenues.
Required
Find and read the 2003 AAER related to Homestore, Inc. Explain the scheme that the company used to inflate advertising revenues. What is meant by the term “round-trip” transactions? How were the company’s vendors involved?
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Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
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