Question
Improper Recognition of Sales: The SEC Complaint (2011) alleged that Basin also overstated revenues via contingent sales. Further, according to the SEC Complaint, Several sales
Improper Recognition of Sales: The SEC Complaint (2011) alleged that Basin also overstated revenues via contingent sales. Further, according to the SEC Complaint, Several sales did not occur in the quarter in which revenue was recognized (par. 3). These alleged methods described by the SEC are similar to some of Sunbeams methods of overstating sales. Review Sunbeams signals of overstatement of sales (See chapter 3) and identify which of those signals could have been found in an analysis of Basin Waters financial statements. Provide supporting calculations. Page 260 of Detecting Accounting Fraud: Analysis and Ethics. Basin Financial Statements are on Pages 261-267. Can someone help me?
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