Check My Work Read the following scenario and answer the question in 5–10 sentences. You are the CEO of a multinational clinical trial corporation. The next step in your corporate goals is to take the company public. You send a retainer letter to Upright Accountants laying out your plan, along with a note affirming the financial strength of your company, and a check for $100,000. The check should well cover the cost of an external audit to be performed by Upright and for 75 certified financial statements that you intend to send to potential investors and lenders. At completion of the audit, the statements vastly overstate the worth of your company. Pleased with the results, but somewhat suspicious, you rely on the certifications to take the corporation public and release an IPO in the amount of $25 per share. As the CEO, what are your concerns?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
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Read the following scenario and answer the question in 5–10 sentences.

You are the CEO of a multinational clinical trial corporation. The next step in your corporate goals is to take the company public. You send a retainer letter to Upright Accountants laying out your plan, along with a note affirming the financial strength of your company, and a check for $100,000. The check should well cover the cost of an external audit to be performed by Upright and for 75 certified financial statements that you intend to send to potential investors and lenders. At completion of the audit, the statements vastly overstate the worth of your company. Pleased with the results, but somewhat suspicious, you rely on the certifications to take the corporation public and release an IPO in the amount of $25 per share. As the CEO, what are your concerns?
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