The audit procedures that might have led to the detection of the accounting irregularities perpetrated by Crazy Eddie personnel are as follow: For assets; Short-term investments had a zero balance until when it went to The most startling is that merchandise inventories decreased from That year, Antar established a corporate main office in Brooklyn, New York.
Electronics go down in price quicker than other retail goods because the technology is changing very rapidly. A small reason for why the inventory was overvalued is due to the rapidly decreasing prices in electronics due to constant improvements in technology.
Chertoff, calling Eddie "the Darth Vader of capitalism", vowed to begin a new trial. Murad and Tera worked in their market stalls alongside Arabsincluding Egyptiansother Syriansas well as Turks. The intent of Adjimi's group was to reopen the chain, but nothing ever came of the attempt.
In order to lessen it losses, the audit firm usually cuts back on the amount of audit work and the audit may be understaffed.
Ina live commercial was performed by DJ "Dr. There is also a problem with AR, the turnover decreased from As seen in this case, it required special attention because same store sales were increased by the way drop-shipments were recorded as revenue. Therefore, in retaliation for the lawsuit, Eddie said that if Warner was going to sue for the commercial, he would stop selling Atari products in his stores.
Finally, they can compare the transactions with previous years records and other firms in the same industry to see if there is a similar pattern. This can be determined by analyzing rations in the financial statements. I have highlighted the lines in the attached Excel spreadsheet where I have common-sized the balance sheet and income statements and computed two years of ratios.
As a additional procedure the auditors should contact the supplies of the inventory to request the missing invoices in order to verify their existence. Accrued expenses went from For most of the next fifteen years Carroll performed commercials in the same frenetic manner he had for radio.
This would be a sign that company tied up most of the money into investments and did not leave much for other expenses.
However, Gemal was never able to find the retail space he sought to reinitiate the Crazy Eddie store chain, and in the online business ended.
That year, Antar established a corporate main office in Brooklyn, New York. “Classic Case Studies in Accounting Fraud” A thesis submitted to the Miami University Honors Program in partial fulfillment of the requirements for University Honors.
Case Audit: CRAZY EDDIE, INC. A Latar Belakang Masalah Eddie Antar dari lahir hingga besar, tinggal bersama keluarga Syrian ada tahun Setelah keluar dari SMU pada umur 16 tahun, Antar memulai menjajakan pesawat televisi di lingkungan Brooklyn. Dalam beberapa tahun, Antar dan salah satu sepupunya bekerja bersama-sama dan menghasilkan cukup.
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, 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. The Crazy Eddie Fraud.
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoff’s Ponzi scheme, frauds in the subprime mortgage market, the AIG bailout, and Goldman Sachs’ failure to disclose.
Crazy Eddie, Inc Audit Case 1. Compute key ratios and other financial measures for Crazy Eddie during the period 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%(12).
Crazy Eddie was a consumer electronics chain in the Northeastern United thesanfranista.com chain was started in in Brooklyn, New York, by businessmen Eddie and Sam M.
Antar, and was previously named ERS Electronics (ERS stood for Eddie, Rose and Sam; Rose and Sam were Eddie's parents).The chain rose to prominence throughout the Tri-State Region as much for its prices as for its memorable radio.Crazy eddie audit case