Statements of Allegations of the staff of the Ontario Securities Commission and the U.S. Securities and Exchange Commission against Obiero Corporation and four of its current and former executives. His firm, McIntyre and Associates, was a boutique accounting firm that specialized in providing analysis and recommendations to legal firms representing various classes of shareholders in class action lawsuits. 

McIntyre had the pending Obiero allegations on his radar since the late 2003, when the Banc of America issued “a sell-rating” on Obiero stock, citing the company’s aggressive accounting practices. In light of these new charges, McIntyre was convinced that his firm would be engaged by one of his law firm clients to provide the forensic accounting analysis to them as legal representatives of shareholders in a suit. Motanya needed to review the multitude of information accumulated in the Obiero files and determine which of the many issues should be investigated more fully to support any case. 

Based on the case above and using relevant examples answer the following questions:

i. What could have pressured the staff of Obiero to pursue aggressive accounting practices as cited by Bank of America while issuing “a sell-rating’’ on Obiero 

ii. As per the case, opportunities for perpetration of fraud were created within Obiero. According to you, what are the elements that may have created these opportunities for fraud perpetration? 

iii. Obiero Corporation was bedeviled by aggressive accounting practices well described as creative accounting as a type of fraud. State other types of fraud that can be perpetrated by the staff at Obiero Corporation. 

iv. Highlight the red flags of fraud that may be exhibited in Obiero Corporation 

Answer rating: 100% (QA)

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