4 questions Barcamone

“White Collar Fraud” Please respond to the following:

· evaluate the accounting policy related to purchase discounts and trade allowances used by Sam E. Antar at Crazy Eddies to cover up the fraud. Identify how you would detect an error in the treatment.

Describe the techniques you would use to identify the reported errors in inventories. Do you agree with smoothing income if fraudulent techniques are not used? Explain your position.

“Accounting Restatements” Please respond to the following:

· speculate why a stock declines more prior to the restatement than after the restatement, and why restatement involving operational errors and those related executive compensations result in greater declines.

Imagine you are a CEO for an organization that needs to restate earnings. Describe the actions you would take to lessen the decline of the stock price.

“Signs of Illegal Activity”
Please respond to the following:

· explain how you, as a financial advisor, could mitigate the risk of being held responsible for a client who is laundering money.

Assume that you are a CPA working in a public accounting firm and discover that your client is involved with money laundering and other fraudulent activities. What would you do?

“Overstock.com”
Please respond to the following:

· evaluate and discuss how the under billings should have been accounted for in the original financial statements.
 Should the under billings be treated as gain contingencies? Explain your position.