The SEC filed a complaint in federal court Thursday against Logitech's then-chief financial officer, Erik Bradman, and then-acting controller, Jennifer Wolf, alleging that they deliberately minimized the write-down of millions of dollars of excess component parts for a product for which Logitech had excess inventory in fiscal 2011. For Logitech's financial statements, the two executives falsely assumed the company would build all the components into finished products despite their knowledge of contrary facts and events. IN the Logitech case, former CEO Gerald Quindlen was not accused of any misconduct but has returned $194,487 in incentive-based compensation and stock sale profits received during the period of accounting violations. enquired, analyze how the fraud will help overstate the earnings from accounting perspective.

Answer rating: 100% (QA)

The SEC said that during the 2011 fiscal year Logitech had overstocked component parts for its Wirel... View the full answer