You have been retained by the attorney for Tazita Inc., a maker of hand-painted coffee mugs. Tazita
Question:
You have been retained by the attorney for Tazita Inc., a maker of hand-painted coffee mugs. Tazita is a creditor for Fracasa Enterprises. Tazita believes that the owners of Fracasa "bled out" the assets of Fracasa in the previous 2 years. Fracasa appears to be completely gutted of assets, but the holding company for Fracasa has started a new company that also manufactures coffee mugs. Tazita believes that the new company is prospering at the expense of Fracasa, and now Fracasa is over 90 days overdue in paying a large amount of money it owes Tazita on ac- count. At the beginning of your engagement, the attorney for Tazita asks you to develop and propose a complete legal strategy for going after both Fracasa and the new company. It is the feeling of the retaining attorney that going after Fracasa alone will likely be a fruitless exercise.
Required
Is developing a case strategy within the scope of work something that a forensic accountant should engage in? Explain. How might you assist in this case?
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