Questions from Accounting Ethics

Q: The story of Theranos, a company that sought to make blood

The story of Theranos, a company that sought to make blood tests cheaper, is a cautionary tale for Silicon Valley about what can happen when a company fails to develop internal control systems or over...

Q: Meredith Merriweather, CPA is the CFO of Trego Bikes and Trikes

Meredith Merriweather, CPA is the CFO of Trego Bikes and Trikes (TBT), a manufacturer of Bicycles ranging from tricycles to high end racing bikes. The company has good market penetration and has seen...

Q: Jeremy Strong, CPA was recently hired as the new CFO of

Jeremy Strong, CPA was recently hired as the new CFO of Imageware Consolidated (IC) a small publicly owned company. This is Jeremy’s first job outside of public accounting, leaving Deloitte after ten...

Q: Monsanto is an agricultural seed and chemical company that manufactures and sells

Monsanto is an agricultural seed and chemical company that manufactures and sells glyphosate, an herbicide, under the trade name “Roundup.” Roundup historically was one of Monsanto’s most profitable p...

Q: The Kraft Heinz Co. case was discussed in the chapter.

The Kraft Heinz Co. case was discussed in the chapter. To refresh your memory, on May 6, 2019, Kraft Heinz disclosed that it would restate its financial statements due to faulty procurement practices....

Q: On June 12, 2017, GE announced that 30-year

On June 12, 2017, GE announced that 30-year GE veteran and current President and CEO of GE Healthcare John Flannery would be replacing Jeff Immelt as CEO of the company as of August 1, 2017. Immelt ha...

Q: What are financial statement restatements?

What are financial statement restatements?

Q: On March 4, 2009, the SEC reached an agreement with

On March 4, 2009, the SEC reached an agreement with Krispy Kreme Doughnuts, Inc., and issued a cease-and-desist order to settle charges that the company fraudulently inflated or otherwise misrepresent...

Q: One of the earliest frauds during the late 1990s and early 2000s

One of the earliest frauds during the late 1990s and early 2000s was at Sunbeam. The SEC alleged in its charges against Sunbeam that top management engaged in a scheme to fraudulently misrepresent Sun...

Q: In Chapter 4 we discussed the artificial tax shelter arrangements developed by

In Chapter 4 we discussed the artificial tax shelter arrangements developed by KPMG LLP for wealthy clients that led to the settlement of a legal action with the Department of Treasury and the Interna...