Business Finance Homework Help

I’m working on a accounting discussion question and need an explanation and answer to help me learn.

Exhibits referenced are from the ZZZZ Best Case Study (Michael Knapp) which you found on the internet for last week’s class .

There are many red flags for potential fraud in the ZZZZ Best case. The job site visit by the auditors and investment bankers raises many concerns. Apparently shortly before the closing of the Company’s initial public offering of stock the investment bankers realized that no one from the team of lawyers and auditors had visited a zzzz Best job site. It was determined by the auditors that 4 job site visits should be conducted. Barry Minkow convinced the bankers and auditors that a visit to just the largest job site would be necessary. Exhibit 2 to the case describes the job site visit by the auditors. Exhibit 3 is a confidentiality letter that Barry had the auditors compose relative to restrictions the auditors would abide by. Read the letters and comment on what you would have done if you were the auditor.