ACCTG630 San Diego State University Monsatto Response Discussion Questions

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acctg630

San Diego State University

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The attached document has the case and the 4 questions that need to be answered in detail. Be sure to support and explain your answers

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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 failure? Explain. 3. Of what value are the ethics and compliance requirements agreed to by Monsanto? Do you believe all companies that experience financial fraud should be required to institute such changes? Can such requirements change the culture of a global company such as Monsanto? Explain. 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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Surname 1
Student’s Name
Professor’s Name
Course
Date
Accounting at Monsanto
Question One
According to accounting standards, Issue 6 of EITF 01-9, an organization has the
accounting responsibility to recognize a rebate as a reduction in revenue of the organization,
which Monsanto failed to do. Notably, accounting standards dictate that an organization is
obliged to provide truthful information about its financial position to stakeholders. In this case,
Monsanto failed to adhere to the existin...


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