ETHICS
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Extracted pages from 0_14.pdf - Case 5-2 ZZZZ Best1 I...

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Case 5-2 ZZZZ Best 1 I believe that the auditors in this case, Ernst & Whinney, should have great blame in not having the sufficient information and knowledge to fall into the pressure of the bribes committed by Minkow and analyze the fraud that was occurring. The upper management in ZZZZ Best made the financial information seem perfectly fine, therefore the auditors were unable to identify any miscalculations that would then lead to fraud. Minkow and his company for years kept on staling the fact that his insurance business had an actual positive cash flows system occurring. This would keep the auditors from seeing the main problem concerning the fraud that was started from the very beginning by Minkow and his carpet/insurance business. As this wasn’t enough fake information conducted by Minkow, he would then put out for investigation some of his “rented offices” which was where all the operations were supposedly occurring by the company. In these rented offices, the financial numbers would represent the supposedly best
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  • Spring '11
  • Baurthime
  • Ethics , ZZZZ Best, Barry Minkow

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