Accounting: phar-mor case the case of phar-mor inc read “the case of phar-mor inc” which can be accessed through the devry online library. Phar mor inc case study topics: arthur andersen the primary difference between negligence and fraud is fraud is the intentional concealment or misstatement of.
Share on facebook, opens a new window share on twitter, opens a new window share on linkedin share by email, opens mail client phar-mor, inc is a deep-discount retail chain run by michael “mickey” monus unfortunately, they started losing money since 1988 due to their price was too low to keep.
Phar-mor & coopers phar-mor phar-mor inc was a discount drug store that made their profits by offering goods at a radicaly cheaper price than their competition.
It's unwillingness to allow the shortfalls to damage phar-mor's appearance of success they have a great motivation on hiding phar-mor's cash flow problems, attracting investors, and making the company look profitable eg,monus and finn altered phar-mor's accounting records to understate costs of goods sold and overstate inventory.
Russi the case of phar-mor inc acct-525 october 31, 2012 case summary the case of phar-mor inc was one of the biggest pre-enron frauds that have been uncoveredphar-mor inc established in 1982 phar-mor was a small little known discount drugstorephar-mor became well known for offering medications at a 25-40% discount. In 1992, phar-mor, inc, the largest discount drugstore chain in the united states, filed for bankruptcy court protection following discovery of one of the largest business fraud and embezzlement schemes in us history coopers & lybrand, phar-mor’s former auditors, failed to detect inventory.
46 phar-mar, inc 6 a two companies that have committed fraud by misstating inventory are bristol-myers squibb company, who concealed excess inventory held by wholesalers, and leslie fay women’s apparel whose controller increased orders by counting items shipped but did not subtract returns b. View notes - phar mor final report from fina 450 at longwood case study 46: phar-mor, inc accounting fraud, litigation, and auditor liability dexter arrington tracey clements daniel hughes alisha. When mickey monus found out about this news, instead of revealing his losses, he decided to use “creative accounting” to buy some time the fraud was revealed by one of the investors who happened to be the owner of a travel agency that got a check from phar-mor for services that were not related to the course of the phar-mor’s business.