Resources & Publications

IMA Educational Case Journal
ISSN 1940-204X
Volume 6, Issue 1

Bastion Finance
Shane Moriarity; Andrew Slessor
AN OPPORTUNITY HAS ARISEN TO PURCHASE a stake in Bastion Finance. The seller of a minority interest in the firm has provided summary financial statements and copies of selected internal documents. Students are asked to use the information to prepare forecasted financial statements, to identify and evaluate risks associated with the investment, and to make a recommendation of whether the opportunity should be pursued. Although Bastion Finance is not a real firm, the case is based on actual practices that have occurred in the industry as revealed through court cases and media commentaries. The case is suitable for second-level, undergraduate cost/managerial courses or courses in forensic accounting.
Keywords: financial forecasting, identifying risks, evaluating risks.

Performance Measurement at Great Persons, Inc.:
An Application of the Balanced Scorecard

William Bowlin
THIS CASE PROVIDES STUDENTS WITH A REAL-WORLD, hands-on experience in developing a balanced scorecard. It is different from other balanced scorecard cases in that it takes place in a charitable not-for-profit environment. Unlike a business, profit is not the primary objective of this organization’s existence. Great Persons, Inc.’s primary reason for existing is to provide services to disabled individuals. Profits or finances are a supporting objective as opposed to an end objective. Another interesting aspect of this case is the organization’s approach to developing the balanced scorecard perspectives and critical success factors (CSFs). The perspectives were identified after the CSFs were identified and aggregated into like groups by the development team.
Keywords: balanced scorecard; not-for-profit organization; performance evaluation.

Koss Corporation
Corporate Governance, Internal Controls, and Ethics:Corporate Governance, Internal Controls, and Ethics: What Went Wrong?

Melanie O. Anderson
THE KOSS CORPORATION, A SMALL MANUFACTURER OF STEREO HEADPHONES, suffered a $34 million corporate fraud at the hands of a trusted key executive over a five-year time period. (The investigation only covered five years, but the total longevity of the fraud was allegedly 12 years.) This case reviews the facts of the fraud and asks students to evaluate the internal controls and corporate governance in place at Koss Corp. at the time of the fraud and to make recommendations for improvements. Students are also asked to make a recommendation as to what ethical action(s) to take if, as a management accountant, they were faced with demands by a supervisor to make fraudulent entries.
Keywords: corporate governance, internal controls, Sarbanes-Oxley Act of 2002 (SOX), ethics, Koss Corp.

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