Review case study : 7-10 Beazer Homes
Then, response to the following in 350 to 700 words.
1. What role did organizational ethics play in the Beazer Homes fraud? Is this something the auditors of Deloitte should have been more conscious of? Explain.
2. Evaluate Beazer's accounting for cost-to-complete reserves from a GAAP perspective. Was the initial accounting for the reserve in conformity with GAAP? What was the company trying to achieve with its accounting?
3. Categorize the accounting devices used by Beazer into one the financial shenanigan groupings. Include a discussion of how earnings were managed in each case.
4. Assume you were hired to analyze the information in this case and write a two- to three-page report on your findings. Discuss each element of the fraud and why Beazer, Rand, and/or Deloitte violated ethical and professional standards.