Crazy Accounting at Crazy Eddie Inc.
Journal of Forensic and Investigative Accounting, Volume 9, Issue 1, 2017
Posted: 6 Mar 2019
Date Written: 2017
The case describes a well-known fraud at a consumer electronics chain in the tri-state New York area in the 1980s. Due to its notoriousness and multifacetedness, the case is engaging and provides many learning opportunities for accounting students. The case exposes students to several important concepts, including: (1) financial statement fraud; (2) fraud motivation triangle; (3) fraud element triangle; (4) red flags; (5) fraud schemes; (6) audit risk, independence, professional skepticism and audit failure; and (7) the importance of internal control.
Keywords: accounting fraud, forensic accounting
Suggested Citation: Suggested Citation