Management & Wall Street expectations of North Face's earnings
What is a pressure?
100
Christopher Crawford's accounting treatment when recording North Face's revenue when dealing with barter transactions
What is a violation of AICPA's competence principle?
100
The US federal law that was enacted to hold companies more accountable for their financial reporting in an effort to clean up fraud and misrepresentation
What is the Sarbanes Oxley Act of 2002?
200
Management Red Flag
What are aggressive accounting methods?
200
The CFO of North Face, structured the barter transaction part of the fraud
Who is Christopher Crawford?
200
Knowledge of Deloitte & Touche's materiality threshold when dealing with cash barter transactions
What is an opportunity?
200
Fiedelman's undocumented changes of the 1997 audit workpapers
What is a violation of the AICPA's integrity principle?
300
Industry Red Flag
What are extremely large sales after peak season?
300
VP of Sales, artificially inflated revenues by means of "channel stuffing"
Who is Todd Katz?
300
Maintaining growth on par with the apparel industry average
What is a pressure?
300
Deloitte & Touche's handling of the questionable barter transactions
What is a violation of the AICPA's credibility principle?
400
Growth Red Flag
What is North Face's substantial growth from 1994-1998?
400
1997 Audit engagement partner of Deloitte & Touche who passed on making an adjustment to North Face's revenue recognition issue
Who is Pete VanStraten?
400
Management's idea of they are helping to keep North Face's value to investors
What is a rationalization?
400
Crawford's failure to disclose the side agreement with vendor to buy back unsold inventory
What is a violation of AICPA's integrity principle?
500
Auditor Red Flag
What are undocumented changes to work papers?
500
Industry specialist advisory partner for Deloitte & Touche who made undocumented changes to the 1997 audit work papers and gave an unqualified opinion on 1997 audit
Who is Richard Fiedelman?
500
Lack of internal controls involving sales transactions
What is an opportunity?
500
Todd Katz coercing two vendors to sign off on false audit confirmations