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Unformatted text preview: Quick rise in market share made them the second largest HD mfr. Behind Seagate. However, when their technology fell behind Seagate and others, an investment banker was brought in to turn things around. The IB fired people on the spot and began cooking the books. They had double billing, double counts of inventory being shipped. They put defective HDs and bricks in boxes. The model numbers, which were old, did not conform with the outside of the box. This allowed EI to be up, CGS to be down and NI to be up. This fiasco showed the importance of knowing the clients business and industry and products when examining and valuing inventory. Particularly true with consumer electronic product manufactures where consumer tastes change quickly. Generally, fresh grads do the physical inventory and if they ask a company employee about the process of conducting inventory, theyve lost their independence....
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- Fall '08