Two former Kmart executives were indicted by a Detroit grand jury on federal charges of fraud, conspiracy and making false statements over their recording of a $42 million payment that resulted in an overstatement of Kmart's results.

explain more about this scandal:

 

 Who was responsible for the fraud? What were their motives for committing it?

 What actually took place? What were the specific financial statement consequences (what accounts were overstated or understated; what were the fraudulent debits and credits and what should they have been)?

 How was the fraud discovered?

What were the consequences to those involved (the company, shareholders, and perpetrators themselves)?

Answer rating: 100% (QA)

The Kmart accounting scandal revolves around fraudulent activities conducted by two former executives of Kmart Corporation which led to charges of fra... View the full answer