This question is in regards to the case study Toy Central and assessing the possiblity of fraud and illegal acts. two weeks after the Board improved the bonus pool, management removed inventory va

This question is in regards to the case study Toy Central and assessing the possiblity of fraud and illegal acts.

two weeks after the Board improved the bonus pool, management removed inventory valuation allowance. This was done despite evidence suggesting that there is excess inventory. Should you consider the removal of the valuation allowance an attempt of management to “manage earnings?” if so, why and if not, then why not?

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