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On the side of investors is the loss brought by the company for its fictitious business for restoration of buildings damaged by fire and flood. Another cause was quest for prosperity by Barry Minkow in business by all means. We will write a custom essay sample specifically for you Proceed. It has been established that the operations of ZZZZ Best Carpeting cleaning business were initiated through constant borrowings and never made any profits. In a way of engaging loan givers, Barry Minkow opened a fictitious fire and flood damaged buildings restoration business, a company which he listed in the public stock market within a short period.

How the shares of ZZZZ Best grew in value of a short time remained questionable given the fact that it was never quite commonly known in the public domain. These investigations led to the arresting, charging and convicting of Barry Minkow and his business associates for engaging in fraudulent activities. Just to be noted here is the fact that the whole ZZZZ Best fraud activities brought financial loss even to carpet cleaning customers as their credit cards were often over billed for services rendered. Following the revealing of the ZZZZ Best carpet fraud case, the government moved to sell the company assets to compensate investors who lost in the scum Akst. It has been established that the ZZZZ Best carpet fraud case acted as an eye opener indicating the weakness of auditing, banking and stock exchange practices of our economy. This thus means that the investment was indeed a financial loss for banks Lieberman.

It has been established that the operations of ZZZZ Best Carpeting cleaning business were initiated through casw borrowings and never made any profits. We will write a custom essay sample specifically for you Proceed. Still on this, is the fact that Barry Minkow is noted to have been involved in check kitting practices among three banks.

Auditors’ Responsibility in Detecting Fraud: ZZZZ Best Case

How the shares of ZZZZ Best grew in value of a short time remained questionable given the fact that it was never quite commonly known stud the public domain. Following the revealing of the ZZZZ Best carpet fraud case, the government moved to sell the company assets to compensate investors who lost in the scum Akst.

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The government serves the sole purpose of protecting its citizens against social, physical psychological and economic instability. Barry Minkow and his other two associates engaged in protecting their fraud activities by making fake invoices for sales as well as fake customer remittance checks.

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Still, it has been established that the scum and its associated consequences formed the basis for Barry Minkow to become a saved man. The production of these phony documents was so skillfully done using photocopying equipments that the company auditors accepted them as evidence that actually sales or receivables transactions occurred in the company Berman 7. Another consequence is the imprisonment of Barry Minkow and his business associates for fraud charges. These investigations led to the arresting, charging and convicting of Barry Minkow and his business associates for engaging in fraudulent activities.

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Case ZZZZ Best Co Inc. by Ryan Demko on Prezi

In a way of engaging loan givers, Barry Minkow opened a fictitious fire and flood damaged buildings restoration business, a company which he listed in the public stock market within a short period.

Investigation into the case established that the company had operated for an estimated five years by using fictitious sales invoice and customer remittance checks as a proof for the company receivables Baliga The company also engaged in over billing carpet cleaning customers through their credit cards Akst.

This is why it calls for the government to investment more resources in enforcing the existing ant-fraud laws as well as enacting and implementing of much effective laws to protect investors from frauds. Just to be noted here is the fact that the whole ZZZZ Best xase activities brought financial loss even to ccase cleaning customers as their credit cards were often over billed for services rendered.

It bst been established that the ZZZZ Best carpet fraud case acted as an eye opener indicating the weakness of auditing, banking and stock exchange practices of our economy. Still, the ZZZZ Best Carpeting Fraud scum was established to have had involved fictitious vendor payments and check kitting practices in and out of three banks Wells However, despite this seemingly booming business, almost all its revenues came from fictitiously recorded receivables Wells The stocks exchange commissioners, brokers and stocks investment advices can also be seen as a cause for the fraud.

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Barry was initially sentenced for 25 years but was only served for seven in jail.

zzzz best case study 1.9

According to investigation report evidence, the company did not make profit and mainly operated on borrowing funds Wells Through this the government will help in sufficiently reducing investor losses caused by inaccuracies of financial statements for companies, a move that could aid in the process of mitigating fraud activities in the society. Investigation findings into the ZZZZ Best Carpeting Fraud case clearly show that Barry engaged in check kitting in and out of three banks for the purposes of realizing successful loan securing despite the fact that his company did not make profits Wells Following the discovery of the ZZZZ Best carpeting fraud activities, the company was investigated and charges made against its owners, a move which saw Barry Minkow convicted and sentenced for 25 years Lieberman.

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Such could only be equated to failure by the banking sector to qualify financial statements of companies, authenticate checks and qualify the actual worthy of a business before giving a loan. Therefore, to prevent case like the ZZZZ Best carpet fraud case, the government should put in place stiffer rules and regulations to ensure transparency and effectiveness of the auditing practices Baliga This thus means that the investment was sgudy a financial loss for banks Lieberman.

zzzz best case study 1.9

This correlation was no doubt missing in the ZZZZ Best Carpeting Company but its auditors zzzzz not expose it to serve investors from eminent loss of their investment. The fraud scum brought loss to investors. Another cause was quest for prosperity by Barry Minkow in business by all means.

On the side of investors is the loss brought by the company for its fictitious business for restoration of buildings damaged by fire and flood.

Such also made him become the founder of the Fraud Discovery Institute in San Diego, whose purpose is to educate investors and general public on how to identify and avoid fraud Lieberman.