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1. What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto's accounting led to materially misstated financial statements. 2. Given that Monsanto was under great pressure from competitors that sold generic brands similar to Roundup, would you characterize the Monsanto situation as a business failure, an accounting failure, and/or an audit fail- ure? Explain. 3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all com- panies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? 4. Do you believe restated financial statements should be audited by a different firm than the one that prepared the original financials? Why or why not? Consider costs and benefits in your analysis.

1. What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto's accounting led to materially misstated financial statements. 2. Given that Monsanto was under great pressure from competitors that sold generic brands similar to Roundup, would you characterize the Monsanto situation as a business failure, an accounting failure, and/or an audit fail- ure? Explain. 3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all com- panies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? 4. Do you believe restated financial statements should be audited by a different firm than the one that prepared the original financials? Why or why not? Consider costs and benefits in your analysis.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 14C
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Please answer all four questions within the attached document.

Questions 1. What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto's accounting led to materially misstated financial statements. 2. Given that Monsanto was under great pressure from competitors that sold generic brands similar to Roundup, would you characterize the Monsanto situation as a business failure, an accounting failure, and/or an audit fail- ure? Explain. 3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all com- panies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? 4. Do you believe restated financial statements should be audited by a different firm than the one that prepared the original financials? Why or why not? Consider costs and benefits in your analysis.
Transcribed Image Text:Questions 1. What is the underlying accounting and financial reporting concept at issue as described in EITF Issue No. 01-9 with respect to the way Monsanto accounted for customer rebates? Explain in your own words how Monsanto's accounting led to materially misstated financial statements. 2. Given that Monsanto was under great pressure from competitors that sold generic brands similar to Roundup, would you characterize the Monsanto situation as a business failure, an accounting failure, and/or an audit fail- ure? Explain. 3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all com- panies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? 4. Do you believe restated financial statements should be audited by a different firm than the one that prepared the original financials? Why or why not? Consider costs and benefits in your analysis.
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