The Midnight Journal Entry

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

• Something that happens during midnight

• About accounting

• About Journal Entry

• Manipulation

• About fraud

Who is the key protagonist?

• Richard Okumoto the CFO of ESI

• Jim the CEO of ESI

• Jack the General Counsel of ESI

• Mike Tetsui the Manager at the Japanese Office

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

• Richard Okumoto the CFO of ESI

• Jim the CEO of ESI

• Jack the General Counsel of ESI

• Mike Tetsui, Manager at the Japanese Office

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

• $ 800 million

• $ 977 million

• $ 987 miliion

.Who is the agent and principal in this case?

• CEO and BOD of Audit Committee

• CFO and CEO

• CEO and BOD

• CFO and BOD of Audit Committee

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

• Personal financial pressure

• Threats by BOD

• Merger Decision

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

• Stewardship Theory

• Fraud Triangle Theory

• Stakeholder Theory

What would you do if you are Richard?

• Leave the company

• Take further action

• Ignore this issue