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Q: The officers of an oil refiner, trader, and hedger based

The officers of an oil refiner, trader, and hedger based in New York were arrested by the FBI for committing massive financial statement fraud. The executives used many schemes to perpetuate the fraud...

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Q: Until its involvement as Enron's auditor, Arthur Andersen was recognized as

Until its involvement as Enron's auditor, Arthur Andersen was recognized as one of the most respected CPA firms in the world. Arthur Andersen, as did other large CPA firms, operated as a limited liabi...

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Q: Qwest is the dominant local telephone company in 14 states and the

Qwest is the dominant local telephone company in 14 states and the owner of an international fiber-optic network. In 2002, the company was investigated by the SEC for not including certain expense ite...

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Q: Enron is a large energy trading company that allegedly committed massive fraud

Enron is a large energy trading company that allegedly committed massive fraud. Enron's primary method of committing fraud was to record liabilities in related partnerships, then known as special purp...

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Q: 1. Unlike other types of fraud, financial statement fraud is

1. Unlike other types of fraud, financial statement fraud is usually not concealed and is therefore relatively easy to spot. 2. Fraud indicators, or red flags, can be caused by fraud or by legitimat...

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Q: In 2005, the SEC filed a civil action suit against Samuel

In 2005, the SEC filed a civil action suit against Samuel Israel III and Daniel E. Marino, managers of a group of hedge funds known as the Bayou Funds. The SEC alleged that Israel and Marino defrauded...

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Q: You keep looking over the financial statement to see where your analysis

You keep looking over the financial statement to see where your analysis is going wrong, but you can't see any problems-it just looks like inventory is getting larger and larger, but you know that you...

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Q: David Sutherland, a partner and fraud examiner in Rachin Cohen &

David Sutherland, a partner and fraud examiner in Rachin Cohen & Holtz LLP, was driving to a client when he heard a CNN announcement that LucidCom, a newly emerged provider of network infrastructure a...

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Q: In November 2017, Wehav Funds, a profitable engineering firm,

In November 2017, Wehav Funds, a profitable engineering firm, signed a Joan guarantee as a third party for No Certainty Company, a newly formed organization focused on pharmaceutical research and deve...

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Q: On a beautiful spring morning in 2015, Stephen Lowber, chief

On a beautiful spring morning in 2015, Stephen Lowber, chief financial officer of Cutter and Buck, Inc., slowly arose from his bed, walked across the bedroom floor, and gazed out the window. It was a...

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