Through these creative manipulation and others, MiniScribe officer kept up a rosy fiscal appearance for the firm’s auditors, Coopers & Lybrand.
For example, for the 1987 audited financials, company officials packaged and shipped construction bricks (pretend inventory value at $3.66 million) so that these products would count as retail sales. When bricks were returned, the sales were reversed but inventory increased. Obsolete past and scraps were rewrapped as products and shipped to warehouses to be counted in inventory