Suppose an accounting clerk fails to write off $5 million of obsolete inventory at a large department

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Suppose an accounting clerk fails to write off $5 million of obsolete inventory at a large department store. The amount is material. Suppose the Securities and Exchange Commission filed a charge against the clerk alleging financial fraud. Do you believe the clerk's failure to write off the inventory, which resulted in misstated financial statements, could be considered unintentional?

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Cost Accounting

ISBN: 9780256257113

4th Edition

Authors: Michael W. Maher, Edward B. Deakin

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