Abstract This case study examines auditing, Misrepresentation of Facts in Fantastic Developments, Inc. Further how accounting can be used to mislead decision makers into acting against their own interests operation of legal requirements for financial reporting and several areas where ethics and accounting interact are addressed. Financial statements of a company determine the company’s market value and number of investors. Fantastic Developments, Inc is a company that has been struggling financially and had experienced recurring operating losses. In contrast Fantastic Developments, Inc has presented a furnished, misrepresentation of facts about their financial statement in order to get loan from Coshocton National Bank (CNB). The company presented CNB with a solid financial position and operating profitability. The company has change its CPA firm for its auditing and accounting needs without informing the former CPA they were using. Further when Jennifer Grace former auditor of Fantastic Developments, Inc, very familiar of the business …show more content…
Shareholders relay on the auditor’s report and opinion in order to invest in a company. Jennifer Grace has a responsibility to express her opinion regarding her suspicious misrepresentation of the financial statement on the Fantastic Developments, Inc to the