Show:
Nature of the company
Company Actions
Audit Failures
100
The business model of Happiness Express, Inc.
What is 1-identifying trendy characters introduced to children in the United States by television programs, major movies, books, and other publications. 2-purchasing merchandise-licensing for those characters 3-marketing the merchandise to major retailers such as FAO Schwartz, Target, Toys "R" Us, etc.?
100
Two characters the company relied on to replace their revenues from Power Ranger sales
What is Budgie the little helicopter and Dudley the Dragon
100
The auditors failed to recognize a significant change in this business practice
What is the percentage of factored receivables
200
Reliance on this proved to be central to the company's early success
What is market research?
200
The class action lawsuit filed against Happiness Express the day after the September 1995 announcement charged Happiness Express and it's key officers with this.
What is distorted fraudulent misrepresentations and insider trading
200
An indicator of the risk of potential material misstatements in the financial statements
What is unusually large increases in year-end sales to a single or a few customers?
300
The percentage of revenue that Power Rangers produced for Happiness Express in 1995
What is 75%
300
The primary source of the company's financial problems that had prompted the fraudulent scheme of concealment of the company's deteriorating financial condition was this.
What is sudden drop in sales of Mighty Morphin Power Rangers?
300
3 instances where the auditors did not use due care in examining documentation
What is 1-when examining invoices and bills of lading associated with Wow Wee sales 2-accounts receivable confirmations with Wow Wee 3-Failure to examine invoices associated with year end receivables from West Coast Liquidators?