Questionable Accounting Schemes of Campbell Soup - Case Study Example

The company managed its reported numbers for a variety of reasons. Firstly, they managed them using price concessions to prop up reported profits and revenues. It was intended to make them meet or surpass their quarterly and annual profits that were forecasted by Wall Street analysts. Secondly, it was to help them maintain reasonable gross profit margins. Finally, the company managed its reported numbers to achieve its financial goals of the company.   The risk of financial misstatements is likely to impact the performance of the company negatively. It triggers a sharp reduction in the stock price of a company’s common stock.   3. Do you think the auditors should be held responsible for failing to detect misstatements?   I think they should be held responsible because seemingly they aided in the accounting schemes that were used by the company. Having audited the financial statements they ought to have discovered the misstatements but they recklessly ignored them.   Read More