Businessman Ernie Baydoff needs to file with the SEC a set of financial statements for his publicly traded company. The statements need to be certified by a CPA. The set of statements that Ernie wants to file show his company making a record profit; they are also completely bogus. To accomplish his goal, Ernie has been meeting with numerous small accounting firms and offering a big fee to any firms that would issue an unqualified opinion on the financial statements without conducting an audit or asking any questions. What Ernie is doing is known as ________.

Question

Quizplus · Accepted Answer

Ernie Baydoff is engaging in "shopping" for accountants, which means he is looking for an accounting firm willing to certify his financial statements without proper scrutiny, in order to present a false financial condition of his company to the SEC and the public.

Businessman Ernie Baydoff Needs to File with the SEC a Set