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The Midnight Journal Entry

Total questions: 8

Worksheet time: 2mins

Name
Class
Date
1.

What do you think of when you read this case title "The Midnight Journal Entry"?

a)

Something that happens during midnight

b)

About accounting

c)

About Journal Entry

d)

Manipulation

e)

About fraud

2.

Who is the key protagonist?

a)

Richard Okumoto the CFO of ESI

b)

Jim the CEO of ESI

c)

Jack the General Counsel of ESI

d)

Mike Tetsui the Manager at the Japanese Office

3.

Who is the person who lead the illegal journal entry adjustment?

a)

Richard Okumoto the CFO of ESI

b)

Jim the CEO of ESI

c)

Jack the General Counsel of ESI

d)

Mike Tetsui, Manager at the Japanese Office

4.

How much is the amount of eliminated accrued liability of Asian employees’ benefits?

a)

$ 800 million

b)

$ 977 million

c)

$ 987 miliion

5.

.Who is the agent and principal in this case?

a)

CEO and BOD of Audit Committee

b)

CFO and CEO

c)

CEO and BOD

d)

CFO and BOD of Audit Committee

6.

6.What is one of the factors that pressure CEO to made the illegal journal entry adjustment?

a)

Personal financial pressure

b)

Threats by BOD

c)

Merger Decision

7.

7.What is one of tools used in this case?

a)

Stewardship Theory

b)

Fraud Triangle Theory

c)

Stakeholder Theory

8.

What would you do if you are Richard?

a)

Leave the company

b)

Take further action

c)

Ignore this issue