Question
You are an associate at ABC LLP, a forensic accounting firm. Your company is retained by the Law Firm that is representing a client. The
You are an associate at ABC LLP, a forensic accounting firm. Your company is retained by the Law Firm that is representing a client. The client, the former CFO of the Public Company, is being investigated by the SEC and FBI for apparently running a large accounting fraud scheme and funneling money to his own account through wire transfers after allegedly falsely invoicing sales during 2013 and 2014. The apparent account fraud scheme may have artificially inflated the company's stock price by 25% during 2013 and 2014. The Auditing Firm audited the Public Company and issued opinion letters in connection with the Public Companys 2013 and 2014 annual reports.
You are just getting up to speed on the case, but the ABC Partner asked for you to help analyze the issue in connection with the Law Firm.
You're asked to analyze whether, in fact, the apparent scheme caused the company's stock price to be artificially inflated. Describe how you would conduct that analysis. 10 points.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started