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The question pertains to the Moonstay Corporation and the use of restructuring reserves to manipulate reported income. It is case study 15 from Case Studies

The question pertains to the Moonstay Corporation and the use of restructuring reserves to manipulate reported income. It is case study 15 from Case Studies in Forensic Accounting and Fraud Auditing (ISBN: 978-0-8080-3644-9). The case involved civil fraud charges filed against several Moonstay officers due to fraudulent inflating of restructuring reserves to show changes in income.

What evidence would be critical for you to prepare if you were to testify as an expert witness including what charts or graphs you would prepare and what areas you believe would be most critical for you to include in your report if you were retained by the SEC as a forensic accounting expert?

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