University of Miami

ACC 522

ACC 522/622 SPRING 2018

QUIZ 7 Crazy Eddie

1)The Crazy Eddie fraud was pervasive. What was the main account that was misstated?

2. There were at least two conditions that caused third parties to question the auditor’s independence. What was one of these conditions?

3. In what industry did Crazy Eddie operate?

4. What condition in the industry created an incentive for Crazy Eddie to commit a fraud?

5. Crazy Eddie employed family members in leadership positions. How did this policy affect the control environment?