Facts
Issues
Outcome
Involvement
History
100
When was Livent founded?
1989
100
How long did Livent misstate their financial statements?
5 Years (1993-1998)
100
When did Garth and Myron get charged?
2009
100
Who were the 3 players involved in the scandal?
Garth Drabinsky, Myron Gotlieb, Maria Messina.
100
How did Micheal Orvitz become the new CEO?
He invested 20 million dollars into the company after it went in major debt.
200
What is Livent?
Major promoter of a live musical theatre (The Live Entertainment of Canada)
200
How many accountants admitted to Livent's changes?
5 accountants
200
What happened to Garth and Myron as a result of their actions?
They were charged with fraud and sentenced to 7 years in prison.
200
Deloitte & Touche is an __________ that monitors records of a company to make sure they are correct.
auditor
200
How much were expenses underestimated by?
30 Million dollars
300
What were some changes to the balance sheet that Garth and Myron did?
- Removed expenses - Underestimated expenses by $30 million - Erased liabilities - Overstated revenue by $34 million
300
How were the accounting irregularities discovered?
Micheal Ovitz, new CEO, hired Robert Webster who learned of the irregularities. Also, 5 accountants admitted to changing records
300
Name 3 impacts of the fraud scandal.
Any information on Deloitte & Touche, Toronto tourism, shareholders and/or Micheal Orvitz.
300
How did Myron and Garth meet?
Shared similar business interests which led the to become great business partners
300
Name 3 accounting principles that Garth and Myron violate.
Matching Principle, Revenue Recognition Concept, Objectivity Principle, Business Entity Concept, Principle of Conservatism.
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