Ask a new Question

POSEIDON CONCEPTS CORPORATION: BOOM TO BUST

1.Explain the significance of the information disclosed by Poseidon's on November 14, 2012.

2.Discuss the difference between earnings management and fraud and outline the types of accounting manipulation practiced by Poseidon.

3.What red flags can be identified from Poseidon's financial statements? In your discussion, include an analysis of Poseidon's average collection period and a comparison of the accounts receivable practices of Poseidon and Open Range.

4.What significance can you draw from the management team's decision to sell Poseidon shares?

5.Using evidence from the case, evaluate Poseidon's internal controls and corporate governance.

6.Outline the information and red flags that may have prevented this situation for Ortega and her team and recommend how URI could prevent a similar situation in the future.