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?