Show:
Nature of the Company
Main Characters
Company Actions
Audit Failures
Important Terms
100
The business model of Happiness Express, Inc.
What is A) Identifying popular characters introduced to American children by movies, television, books and other publications B) Purchasing licensing and merchandise rights for those characters. C)Marketing the merchandise to major retailers (Walmart, Target, Toys"R"Us, etc.?
100
These people were the creators of Happiness Express, Inc.?
Who are Joseph and and Isaac Sutton?
100
2 characters that Happiness Express, Inc. relied on to replace the Mighty Morphin Power Rangers
Who are Dudley the Dragon and Budgie the Little Helicopter?
100
The auditors failed to recognize a significant change in this business practice.
What is the percentage of factored receivables?
100
The buying or selling of a security by someone who has access to material, nonpublic information about the security.
What is Insider Trading?
200
Reliance on this was the secret to the company's early success
What is market research?
200
The creator of Budgie the Little Helicopter and Dudley the Dragon
Who is Sarah Ferguson, the Dutchess of York?
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?
200
A legal term that refers to intent or knowledge of wrongdoing.
What is Scienter?
300
The percentage of revenue that the Mighty Morphin Power Rangers produced in 1995?
What is 75%?
300
They were involved in insider trading in this case
Who are Michael Goldberg (CFO), Goldberg's landlord, and Goldberg's friend?
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 are A) When examining invoices and bills of lading associated with Wow Wee sales B) Accounts receivable confirmations with Wow Wee C) Failure to examine invoices associated with year end receivables from West Coast Liquidators?
300
The rights to sell goods with intellectual property on it.
What are merchandise lisceinsing rights?