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The following paragraphs are taken from a 60 page complaint against Dell filed by the SEC. Dell eventually settled for $100 million. Read the selected

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The following paragraphs are taken from a 60 page complaint against Dell filed by the SEC. Dell eventually settled for $100 million. Read the selected paragraphs and think about the following: 1. Intel and Dell conspired to limit competition in the microprocessor market. That is not actually accounting fraud although it is probably a violation of the Robinson Patman Act of 1936. The SEC specifically discusses how Dell stated in MD & A that the Gross Margin improvements that were from the Intel bargain were actually due to "cost reduction Inititatives" How is that an accounting fraud? 2. Dell was putting some Intel funds in "cookie jar" reserves and then using them to shore up Net Income. How are reserves supposed to be used and why did this violate GAAP

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