ACC 556 Crooked Scenario 2 Part 1
For each of the following items , indicate by using the appropriate code letter , how the item should be reported in the statement of cash flows , using the indirect method . --------------------------------------------------------------------
ACC 556 Crooked Scenario 2 Part 1
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Shortly after you completed your work of unpacking all the players in the CrookEd Partners drama and identifying all potential fraudulent activity that had been relayed to you ( Week One Scenario Assignment ), your secretary came into your office and said you had a visitor . You inquired who it was and she said it was an accountant , C . H . Ainge O ‘ Hart ( Chainge ‗ O Hart ) from a local CPA firm , Inn , Kaw , Hoots ( IKH ). You were familiar with this firm and familiar with their reputation . You also know they were the external auditors and business advisors for CrookEd Partners , as mentioned by Bubba . You immediately dropped what you were doing and rushed out of your office to meet Mr . Hart . He is escorted into a private office where you also invite your team .
Mr . Hart was obviously nervous and sweaty , so you offer him something cool to drink . Almost before you could sit down and begin to inquire why Mr . Hart has joined you , he blurts out that one set of the financial statements he provided Steamy and Daddy were correct and one set was wildly incorrect . The one created by CrookEd Partners is false ; the one by Inn Kaw Hoots is correct .
He had tried to bring this information to local authorities , Steamy and Daddy , and others , and when he had done so , he was threatened with his life by the partners of his CPA firm ( they did not want to lose a