The case of the mexican crazy quilt case 5 the case of the mexican crazy quilt “the mission of the project which you will head is to get our new mexican subsidiary company ready for take-over by mexican managers. “classic case studies in accounting fraud” crazy eddie 28 - 39 phar-mor 40 - 49 foundation for new era philanthropy 50 - 56 enron 57 - 68 a milestone case in fraudulent financial reporting occurred in the 1930s, soon after the great depression, at mckesson & robbins (mckesson), a pharmaceutical giant. The main critical issue in the crazy eddie case is the incompetence and lack of professional skepticism of the company’s audit team and their inability to successfully comply with the standards of gaas.
Running head: crazy eddie case 18 1 questions 1 compute key ratios and other financial measures for crazy eddie during the period 1984-1987identify and briefly explain the red flags in crazy eddie’s financial statements that suggested the firm posed a higher-than-normal level of audit risk there were several red flags in crazy eddie’s financial statements. “crazy eddie” was eddie antar, the grandson of syrian immigrants, who started a modest stereo shop in brooklyn and parlayed it into a retail empire grossing $350 million annually in addition. Crazy eddie paid managers almost 3/4 of their salaries in cash sam antar began college with expenses being paid by the antar family 1980 began reducing skimming to increase profit growth for the ipo sam graduated and became the de facto cfo then to penn & harowitz 1984. Assume that you were a member of the crazy eddie audit team in i 986you were assigned to test the client's year-end inventory cutoff proceduresyou selected 30 invoices entered in the accounting records near year-end: is in the few days prior to the client's fiscal year-end and is in the first few days of the new year.
Auditing case 2: crazy eddie, inc 1 an analysis of key ratios during the period of 1984-1987 would have resulted in red flags that indicated that crazy eddie had a higher than normal level of audit risk. Eddie antar, known to millions in the new york area as the audio-video retail pioneer crazy eddie, died on saturday, according to bloomfield-cooper funeral home in ocean township. Crazy eddie financial fraud this is an old article-- from 2000 -- but the sidebar (at the end) describing how the electronics store crazy eddie committed massive financial fraud is fascinating there are numerous ways to classify financial statement frauds our research divided them into five principal, but related, types. Crazy eddie fraud case the elements of fraud triangle, diamond and fraud pentagon are present in the fraud case of crazy eddie three major components of fraud triangle consist of rationalization, an opportunity for fraud and pressure to commit fraud.
1 8 crazy eddie download 1 8 crazy eddie uploaded by as in the crazy eddie case, the auditors should have found out the nature of the transshipping transactions, and the potential high risk placed in the inventory accounts by proper performance of the risk assessment procedures the audit procedures that might have led to the detection. Crazy eddie's comparable store sales, earnings, and cash were overstated in 1986 the money was in the bank and the auditors assumed that it came from legitimate sales however, the auditors never considered that even if the company had such money in its accounts, there was a possibility that such funds could come from sources used to. In the crazy eddie’s case, sam e antar, the cfo (and eddie’s nephew), regularly stashed unpaid bills in his desk the liabilities would be either entered after the yearend or held for long periods without being recorded.
Eddie antar, the founder of the crazy eddie electronics chain, follows a detective through a courthouse following a legal hearing. In february 1990, eddie antar failed to appear at a newark hearing on a contempt charge in connection with the case that was the beginning of his two and a half years on the run advertisement. Timing of the case fraud frauds impact on stock price references this paper is on the crazy eddie's accounting fraud and audit risk it is 2,067 words, which is 8 pages doubled spaced it is written in apa format, with 5 references the paper focuses on the accounting fraud at crazy eddie, and the audit risk of the company.
Crazy eddie case questions 1 compute key ratios and other financial measures for crazy eddie during the period 1984-1987 identify and briefly explain the red flags in crazy eddie’s financial statements that suggested the firm posed a higher-than-normal level of audit risk. Brad farber professor dignam may 2nd 2013 case 1 8 crazy eddie 1) during the years of 1984 thru 1987, crazy eddies financial statements showed a handful of red flags which should have led to auditors raising questions to the companies numbers that were be inflated by crazy eddie and the rest of his executive board (which was mostly his family. Crazy eddie his prices are insane sam antar and his son eddie, started the first crazy eddie electronics store in coney island, and the stores spread like mushrooms throughout the 70's until they were all over the new york areaby the 1980's, their tv ads were inescapable.
In either case, crazy eddie antar will be remembered, but he won’t be missed steven malanga is the senior editor of city journal , the george m yeager fellow at the manhattan institute, and the author of shakedown: the continuing conspiracy against the american taxpayer. Crazy eddie case study - find out everything you need to know about custom writing forget about those sleepless nights writing your coursework with our writing service best hq academic services provided by top specialists. A factor in the crazy eddie case had to do with the inventory being over valued a small reason for why the inventory was overvalued is due to the rapidly decreasing prices in electronics due to constant improvements in technology.