Q1. Visit the following website on the ten worst corporate accounting scandals of all time. Select one of the scandals that interest you on this site.
Q2. Create a one to two-page report to address the following questions:
- Provide the name of the company involved in the scandal you chose.
- What was the accounting scandal? What wrongdoing occurred?
- Specifically, which one of the four accounting GAAP principles did the company violate?
- Why do you think this principle was violated? Explain your answer.
- In the financial statements, there are several accounts: assets, liabilities, equity, revenue, and expense. What account type is involved in this scandal? For example, did they overstate revenue, did they understate expenses, etc.?
- How was the company penalized? Do you think the penalty was enough to prevent future scandals?
- Identify one other penalty that you would have applied. Explain your answer.