Refer to the Focus on Fraud feature Warranty Accrual Accounting. Obtain a copy of the related SEC
Question:
Refer to the Focus on Fraud feature “Warranty Accrual Accounting.” Obtain a copy of the related SEC AAER (SEC AAER No. 3765 / April 19, 2016) and other relevant news articles.
a. Why did Logitech’s management choose not to follow GAAP? Consider the fraud triangle in answering this question.
b. Does the AAER provide any insight as to whether the warranty “problem” was material?
c. Do you think that the Logitech auditors exhibited an appropriate level of professional skepticism?
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Step by Step Answer:
This AAER describes three fraudulent accounting issues 1 One related to writing down a failed produc...View the full answer
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Related Book For 
Auditing A Risk Based-Approach
ISBN: 978-1337619455
11th Edition
Authors: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
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