Happiness Express Inc
Happiness Express Inc.
Strengths:
This case right off the bat seemed quite interesting since I never really think about the toy manufacturing industry much. The article really proves the point that in order for a toy manufacturing company to be successful they must be ahead of the game or anticipate what children will like as toys. It’s also important for companies to get merchandise-licensing rights for popular figures, such as Mighty Morphin Power Rangers in this case. However, the point of this article wasn’t about how hard it is to make a long lasting company in the toy business, but about how important an audit is to the public, more specifically shareholders. The case explains the effects of the very careless audit made by Coopers and Lybrand LLP. I feel for those who don’t know very much about accounting, don’t truly understand how important accounting really is. Because Coopers and Lybrand performed such a careless audit, they weren’t able to detect the fictitious sales and receivables made right at year end, thus causing many of the shareholders to lose a lot of money in the end.
Weaknesses:
I feel this case didn’t explain too much in the defense of Coopers and Lybrand. Why did they perform such a careless audit? Were they paid off? Many questions seem to be unanswered. I also feel a lot of the blame was put onto Coopers and Lybrand, when in fact; this negative outcome arose from Happiness Express Inc. performing all the fake sales at year end. I agree Coopers and Lybrand should be at blame, but Happiness Express is equally at fault, it not more.
What I learned:
I feel it is clear what this case wants the public to take away from it, and that is that it is very important for an audit to be performed thoroughly and accurately. If not, you can expect some unfavorable outcomes. This case pointed out some clues to some possible fictitious sales which help in the real world. An example being the fact that many sales were made right
Strengths:
This case right off the bat seemed quite interesting since I never really think about the toy manufacturing industry much. The article really proves the point that in order for a toy manufacturing company to be successful they must be ahead of the game or anticipate what children will like as toys. It’s also important for companies to get merchandise-licensing rights for popular figures, such as Mighty Morphin Power Rangers in this case. However, the point of this article wasn’t about how hard it is to make a long lasting company in the toy business, but about how important an audit is to the public, more specifically shareholders. The case explains the effects of the very careless audit made by Coopers and Lybrand LLP. I feel for those who don’t know very much about accounting, don’t truly understand how important accounting really is. Because Coopers and Lybrand performed such a careless audit, they weren’t able to detect the fictitious sales and receivables made right at year end, thus causing many of the shareholders to lose a lot of money in the end.
Weaknesses:
I feel this case didn’t explain too much in the defense of Coopers and Lybrand. Why did they perform such a careless audit? Were they paid off? Many questions seem to be unanswered. I also feel a lot of the blame was put onto Coopers and Lybrand, when in fact; this negative outcome arose from Happiness Express Inc. performing all the fake sales at year end. I agree Coopers and Lybrand should be at blame, but Happiness Express is equally at fault, it not more.
What I learned:
I feel it is clear what this case wants the public to take away from it, and that is that it is very important for an audit to be performed thoroughly and accurately. If not, you can expect some unfavorable outcomes. This case pointed out some clues to some possible fictitious sales which help in the real world. An example being the fact that many sales were made right