JOURNAL OF ACCOUNTING AND FINANCE
A Fraud Case as Reported through SEC Documents: Revisiting
Its Relevance in Today’s Regulatory Environment
Author(s): Carol M. Jessup, Heidi E. Nance
Citation: Carol M. Jessup, Heidi E. Nance, (2011) "A Fraud Case as Reported through SEC Documents: Revisiting Its Relevance in Today’s Regulatory Environment" Vol. 11, Iss. 2, pp. 155 - 169
Article Type: Research paper
Publisher: North American Business Press
This case highlights accounting manipulations, in areas of reserves and lease accounting, as viewed through SEC documents related to the KPMG audit failure of Xerox 1997-2000. Referenced online citations provide flexibility in the use of the case. We present the original causes and eventual consequences, and update for enacted changes in auditing standards and authoritative guidance, including current efforts to address lease accounting in the IFRS and US GAAP convergence. A set of questions are included; teaching notes contain the actual outcome of the case. The case is appropriate for anyone who wishes to review a well-documented audit failure.