Case Study: Groupon
Read Case Study 5-10: Groupon in Chapter 5, page 333 of your text.
In two to three pages, supported by evidence from your text and from other research (at least one resource is required), answer the following questions:
1. What is the responsibility of management and the auditor with respect to the internal controls of a client?
2. Groupon disclosed a "material weakness" in its internal controls saying that it had failed to set aside enough money to cover customer refunds. Do you believe the company engaged in fraud with respect to customer refunds? Why or why not?
3. Groupon blamed EY for the admission of the internal control failure to spot the material weakness. Do you agree that EY should have spotted the internal control weakness earlier and taken appropriate action? Include in your response the role that risk assessment should have played in EY's actions.
The paper
• Must be two to three double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center.
• Must include a separate title page with the following:
o Title of paper
o Student's name
o Course name and number
o Instructor's name
o Date submitted
• Must use at least two scholarly sources in addition to the course text.
• Must document all sources in APA style as outlined in the Ashford Writing Center.
Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center.