zzzz best company audit presentation

7
ZZZZ Best Company

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ZZZZ Best Company Audit Presentation

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Page 1: ZZZZ Best Company Audit Presentation

ZZZZ Best Company

Page 2: ZZZZ Best Company Audit Presentation

The Beginnings

Barry Minkow starts ZZZZ Best, carpet cleaning company

Financing via Credit Card Forgeries

Meet Tom Paget at GymNew Segment in ZZZZ BEST

Page 3: ZZZZ Best Company Audit Presentation

George Greenspan

ZZZZ Best goes public in 1986

Full scope audit by George Greenspan for the year ended April 30, 1986

Investment banker informs Barry to fire George Greenspan and hire a Big 8 Accounting Firm

Page 4: ZZZZ Best Company Audit Presentation

Ernst & Whinney

Predecessor Successor Auditor Communication

Fake Restoration Site

Ernst & Whinney Resign

Page 5: ZZZZ Best Company Audit Presentation

Downfall

Credit Card Forgery Victim Speaks

Informant contacts Ernst & Whinney via letter

Minkow State Large Profits

Ernst & Whinney late on Form 8k

Page 6: ZZZZ Best Company Audit Presentation

Aftermath

25 years in federal prison

Minkow Released Early for Good BehaviourBecomes Pastor

2011Back in Prison for Insider Trading

Page 7: ZZZZ Best Company Audit Presentation

How To Avoid Similar Frauds

Lack of Communication

Limited the Scope of the Audit

Lack of Due Diligence