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| Topic: |
Business
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| Number of pages / Number of words: |
20 / 5420 |
Essay's paper body
Typical audit procedures would be to confirm with KKD's customers their purchases. In addition monthly variations analysis should have led someone to question the spike in doughnut shipments at fiscal year end.
Accounting Irregularities:
The SEC is investigating if Krispy Kreme used questionable methods to inflate profit when it bought back its Michigan franchise for $32...
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PWC refused to sign off on quarterly results. It was only after the firm retained the services of outside legal counsel to verify the methodology that Krispy Kreme was allowed to put the matter behind them. The outcome of the SEC investigation is still pending.
If PWC were not already under scrutiny for failing to detect inflated sales, PWC may have considered signing off on the accounting methodology based on immateriality...
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