Critical thinking | Accounting homework help

FRAUD CASEBOOK

Adelphia

Read the following articles or other related articles regarding the Adelphia case and then answer the questions below:

Sources:

Securities and Exchange Commission, Litigation Release No. 17627 and Accounting and Auditing Enforcement Release No. 1599, July 24, 2002.

McClam, Erin, “Adelphia Founder Sentenced to 15 Years,” Associated Press/Yahoo! News, June 20, 2005.

Short Answer Questions

1. Why was Adelphia cable company formed?
2. In what year was the original company formed?
3. In what year did Adelphia go public?
4. How many Rigas-related parties were in executive leadership roles at Adelphia?
5. In what month and year did Adelphia file for bankruptcy?
6. For how many years was John Rigas sentenced to prison?

Discussion Questions

1. In addition to financial reporting fraud, what other types of asset misappropriation schemes were perpetrated by the Rigas family members?
2. Discuss why collusive frauds, especially when perpetrated among related parties, is particularly difficult to detect?
3. List five symptoms of fraud that Adelphia exhibited and explain the reasoning for your choices?