期刊名称：Journal of the International Academy for Case Studies
印刷版ISSN：1078-4950
出版年度：2019
卷号：25
期号：1
页码：1-11
语种：English
出版社：The DreamCatchers Group, LLC
摘要：In this case study we present the problems created by misinterpretation of Accounting Standards by a company and the independent auditor’s failure to identity and report these problems. The company, Medicis Pharmaceutical Corporation (Medicis), made several mistakes in the revenue recognition process as it relates to Sales with a Right to Return. Ernst & Young, their auditor for over two decades, did not exercise professional skepticism in conducting the audits and thus failed in their duty to ensure that investors receive reliable information. This eventually led to litigation with heavy penalties for the company and its auditors. The primary objective of this case understands the complexities of an audit engagement and the role and responsibilities of the auditor. This case is designed for a (second) undergraduate or a master’s level auditing course with a difficulty rating of 3. The case may be assigned as a homework assignment or in class discussion in small groups towards the end of the semester.
