Zzzz Best Fraud Case Summary
The auditors had much blame and liability for the incident, since they accepted some “drinks” and other sorts of bribes by Minkow to not proceed when the “weird” financial information was analyzed by the auditors. The auditor’s main responsibilities were too keep any unethical behavior done by the company away from being speculated. The issues would have been taken cared off before growing into a huge dilemma, but the auditors decided to remain quiet and not analyze the concerns of the financial information that was being falsified by ZZZZ Best.
Throughout this case, In the company ZZZZ Best, there were a couple of red flags that existed as a result from the fraud committed and the falsifications by the company. To begin with, the company ZZZZ Best didn’t have the best internal control. It felt like falsifying the information would never come out and bring consequences. To maintain an ethical environment internally, the company should have constructed a strong internal control to avoid any unethical events leading to fraud. Another flag would be the way how the contracts were created with some miscalculated and false information. There should