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
HOWARD STREET JEWELERS, INC.
A common nemesis of small businesses is employee theft. Small business owners who place
too much trust in their employees can suffer significant financial losses at the hands of
apparently hard-working and tr
THE TROLLEY DODGERS
In this brief case, a long-time and trusted employee of the Los Angeles Dodgers engaged in a
large scale payroll fraud to embezzle funds from the organization. Over a period of several years,
this fraudulent scheme co
Chapter 3 - Audit Reports
Standard unqualified audit report
o Report Title
Must be titled and include the word independent
This conveys to users that the audit was unbiased in all aspects
o Audit report address
Usually addressed to the company, its stock
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
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
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
UNITED WAY OF AMERICA
Unfortunately, embezzlement and other fraudulent schemes are rife in the charity
industry. More than any other segment of our economy, the charitable sector has been
plundered by con artists and other miscreants in
TRITON ENERGY LTD.
When Congress passed the Foreign Corrupt Practices Act (FCPA) in 1977, corporate
accountants and independent auditors feared that the new law would add significantly to their
litigation problems. That fear was unwarran
Employee theft ranks among the most serious threats to the profitability of retail businesses.
Retailers that fail to develop effective internal controls to curb employee theft face the risk of
being driven out of business
GOODNER BROTHERS, INC.
Woody Robinson and Al Hunt were lifelong friends. Following graduation from college, Al
went to work for his father-in-law, who owned Curcios Auto Supply, a retail business located
in Huntington, West Virginia. Wit
Knapp Case 7.5
1. Observers of the accounting profession suggest that many courts attempt to socialize
investment losses by extending auditors liability to third-party financial statement users. Discuss
the benefits and costs of such a policy
1. List what you believe should have been the three to five key internal control objectives of
Goodners Huntington sales office.
a. Goodners Huntington sales office should have had several internal control objectives.
The first object
Crazy Eddie, Inc.
1) Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987.
Identify and briefly explain the red flags in Crazy Eddies financial statements that suggested the firm
posed a higher
I chose accounting as a major, on a whim, about a year ago. I had no idea what
accountants do every day, all I knew was that the job market was good, and that was enough to
satisfy me. So many other students have the same experien
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
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
Chapter 1 The Demand for Audit and Other Assurance Services
Auditing the accumulation and evaluation of evidence about information to determine
and report on the degree of correspondence between the information established criteria
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
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
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
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
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
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
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
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
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
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
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
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,