GEMSTAR-TV GUIDE INTERNATIONAL, INC.
Born in war-torn China in 1948, Henry Yuen, known then as Che-Chuen, was forced to
flee that country with his family. After Communist forces took over China, large numbers of
AND LOAN ASSOCIATION
The collapse of Lincoln Savings and Loan Association in 1989 was one of the most expensive
and controversial savings and loan failures in U.S. history. Charles Keating, Jr., is seemingly the
CBI HOLDING COMPANY, INC.
Ernst & Young audited the pharmaceutical wholesaler CBI Holding Company, Inc., in the
early 1990s. In 1991, Robert Castello, CBIs owner and chief executive, sold a 48% stake in his
company to TCW, an investment
JAMAICA WATER PROPERTIES
This case focuses on David Sokol, an executive who has made a name for himself in recent
years within the energy industries. After becoming recognized as a successful turnaround
agent for troubled companies, Soko
In the late 1970s, Deng Xiaoping became the new political leader of the Peoples Republic
of China, replacing Mao Zedong who died in 1976. Almost immediately, Deng installed a
socialistic market economy in China that was antithet
GOLDEN BEAR GOLF, INC.
According to one sports announcer, Jack Nicklaus became a legend in his spare time.
Nicklaus still ranks as the best golfer of all time in the minds of most pasture pool aficionados
granted, he may lose that title
HEALTH MANAGEMENT, INC.
This case profiles an imaginative accounting fraud orchestrated by two top executives of
Health Management, Inc. (HMI), a New York-based pharmaceuticals distributor. The HMI
fraud is noteworthy because it led to t
CAMPBELL SOUP COMPANY
The Campbell Soup Company has dominated the soup industry since the company
developed a cost-effective method of producing condensed soup products in 1899. Throughout
most of the twentieth century, Campbell was know
ZZZZ BEST COMPANY, INC.
Barry Minkow founded ZZZZ Best Company, a carpet cleaning company, in 1982 at the
age of 16. Within a matter of months, Minkow was engaging in several fraudulent schemes to
raise working capital for his small comp
NEW CENTURY FINANCIAL CORPORATION
New Century Financial Corporations bankruptcy filing in April 2007 was the initial incident
in a series of events that would eventually plunge the U.S. and global economies into fullfledged panics. With
This case examines an embezzlement scheme involving CapitalBanc Corporation, a publiclyowned bank holding company based in New York City. The principal operating unit of
CapitalBanc was Capital National Bank, a ba
Similar to most financial frauds, the Livent, Inc. fraud was masterminded by a few
individuals, primarily Garth Drabinsky and Myron Gottlieb. However, numerous individuals
were eventually drawn into Livents fraudulent scheme
HAPPINESS EXPRESS, INC.
In 1989, two longtime sales reps in the toy industry, Joseph and Isaac Sutton, founded
Happiness Express, Inc. The business model developed by the Sutton brothers involved
acquiring the licensing rights to market
In November 2001, Arthur Andersen & Co. employees in that firms Houston office
shredded certain Enron audit workpapers during the midst of a federal investigation of the large
energy company. The decision to destroy those
THE LESLIE FAY COMPANIES
Fred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of
the leading firms in the highly competitive womens apparel industry over the next four decades.
Freds son, John, took over the
JACK GREENBERG, INC.
In the mid-1980s, Emanuel and Fred Greenberg each inherited a 50 percent ownership
interest in a successful wholesale business established and operated for decades by their father.
Philadelphia-based Jack Greenberg,
The conclusion is as following:
Here are some data I mainly used to match these companies:
a. Altmans Z-scores for Bust Buy
JUST FOR FEET, INC.
Harold Ruttenberg immigrated to the United States from South Africa in 1976. In his early
thirties at the time and the father of three small children, Ruttenberg wanted to escape the
political and economic troubles br
CRAZY EDDIE, INC.
Eddie Antar opened his first retail consumer electronics store in 1969 near Coney Island in
York City. By 1987, Antars firm, Crazy Eddie, Inc., was a public company with annual sales
exceeding $350 million. The rapi
Arthur Edward Andersen built his firm, Arthur Andersen & Company, into one of the
largest and most respected accounting firms in the world through his reputation for honesty and
integrity. Think straight, talk straight
A childhood friend summed up the driving force in Bernie Madoffs life: Bernie wanted to
be rich. As a youngster growing up in New York City, Bernie realized that Wall Street was the
greatest wealth creation machine the
DOLLAR GENERAL STORES, INC.
In 1999, Dollar General Stores turned to IBM for help in upgrading its information
technology infrastructure. The key recommendation that IBM made was for Dollar General to
replace the archaic sales registers
ROYAL AHOLD, N.V
Royal Ahold, N.V., is a large multinational company based in The Netherlands that was
founded in 1877 by Albert Heijn. Three generations of the Heijn family oversaw the companys
retail grocery business. In 1989, the comp
This case focuses on Japans accounting profession and independent audit function. As this
case documents, the accounting profession and independent audit function within the United
States and Japan are very similar in many resp
REGISTERED AUDITORS, SOUTH AFRICA
The past two decades have been an extremely turbulent period for the Republic of South
Africa. In 1991, the South African government lifted the decades-long ban on the African
National Congress (ANC), th
KASET THAI SUGAR COMPANY
Many public accountants, particularly recent graduates, relish the possibility of an
overseas assignment. An international assignment may provide an opportunity to see and
experience another part of the world, po
AUSTRALIAN WHEAT BOARD
The Australian government created the Australian Wheat Board in 1939 to help the nations
struggling wheat farmers. All wheat grown in Australia had to be sold to this government
agency. The resulting proceeds were
In 2001, PricewaterhouseCoopers (PwC) became entangled in what business journalists
referred to as Russias Enron. One of PwCs largest audit clients at the time was OAO
Gazprom, the largest publicly owned company in Russia and
TATA FINANCE LIMITED
In the years following the Enron fiasco in the United States, several countries experienced
their own Enron. In India, the business press labeled an accounting and financial reporting
scandal involving Tata Finance L