Read the following articles or other related articles regarding the Phar-Mor case and then answer the questions below:
Markowitz, Arthur, “There’s Phar-Mor to ‘Drug’ Chain than Meets the Eye,” Discount Store News, September 2, 1991.
Freudenheim, Milt, “Phar-Mor and Its Ex-Auditor Clash on Fraud Case,” Drug Store News, August 6, 1992.
Frederick, James, “Scandal Rocks Phar-Mor,” Drug Store News, August 17, 1992.
Gilpin, Kenneth N., “Coopers & Lybrand Sues Phar-Mor Executives,” The New York Times, August 21, 1992.
Bloomberg Business News, “Accountants Sue Phar-Mor,” The New York Times, September 12, 1992.
Murray, Matt, “Phar-Mor, Inc. Reaches a Settlement of Claim Against Coopers & Lybrand,” The Wall Street Journal, October 4, 1995.
Associate Press, “Phar-Mor Founder Gets Long Sentence,” The New York Times, December 2, 1995
Short Answer Questions
1. In June of 1990, how large was the capital infusion to facilitate Phar-Mor growth?
2. Who was Phar-Mor’s flamboyant Chief Executive Officer?
3. Who was Phar-Mor’s Chief Financial Officer?
4. On what date did Phar-Mor announce that David Shapiro would assume the duties of President and Mickey Monus Vice-Chairman?
5.How long was Mickey Monus’s prison sentence?
6. Is Mickey Monus now out of jail?
1. In a fraud case, why does each party (e.g., management, board, audit committee, auditors, lawyers, etc.) usually blame another party for the fraud?
2. Discuss the reasons for this phenomenon and explain the probable reasons why no one who knew about the fraud came forward to stop it?
3. Consider your role as a junior accountant within a company or new staff member within an audit/tax professional services firm. How should you protect yourself from becoming an unwitting participant in a fraud
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