1. Abstract; a brief summary on what is in the Diamond Food Inc. content. The goal of
Diamond Foods becoming a primary competitor at any cost; it engaged in
questionable and unethical behaviors while the leadership of the company attempted
to monopolize the market.
2. Key Issues on concern in this case such as; the walnut market monopolization,
deceitful accounting practices, and defrauding investors
3. Case Analysis; analyzing all the practices performed by the company like;
automatically renewal of their contract for three years terms unless terminated by
either party, four payments were to be made annually by the Diamond to the growers
The primary objectives of Diamond Foods' Case; This case enables students to
develop an understanding of the quality accounting specifically focusing on the
revenue as well as expense recognition issues involved. They can as well understand
how external parties like Mark's firm can uncover accounting “shenanigans”, learn
about the risks and opportunities as the company proliferates through acquisitions.
Running Head: DIAMOND FOODS
Diamond Foods Inc.
Diamond Foods Inc. Summary
The case of Diamond Foods Inc. describes the primary accounting blow up at the
company in the late year 2011. The case was triggered by Off Wall Street report, which is and
was a prominent selling research firm. CEO Michael Mendes led this company (Diamond
Foods), and it was a high growing company that emerged from 2005 as a walnut farmers'
cooperative into a branded snack foods manufacturer due to the acquisitions series strength.
Diamond started to drop its high profile Pringles acquisition due to the accounting scandal which
caused improper accounting for walnut purchases. Besides it also dropped an investigation of
DOJ and SEC, CEO and CFO departed as well as grounding of high flying growth of the
company. This case...