Posted by & filed under Internal control.

Description: There’s a saying that any publicity is good publicity, but i’m not so sure it applies in this case. The giant food manufacturer agreed to a $62 million settlement with the Securities and Exchange Commission (SEC) as a result of Kraft-Heinz’s failure to properly account for certain expenses in its financial statements. Kraft-Heinz has had to restate several years of financial statements to correct its financial reporting. The SEC found fault with the Kraft-Heinz system of internal control, and these weaknesses caused personnel to overlook the accounting errors.

Date:  September 3, 2021

Source:  thestar.com

 Link: https://www.thestar.com/business/thestreet/2021/09/03/kraft-heinz-in-62-million-settlement-with-sec-over-accounting-practices.html?source=newsletter&utm_content=a06&utm_source=ts_nl&utm_medium=email&utm_email=760BE779956395955CFBBA5C497D22A3&utm_campaign=sbj_71610

Discussion points:

1) Do you have any Kraft-Heinz products in your kitchen? Which ones?

2) Does a story like this have any influence on which products you choose to purchase?

3) Chapter 7 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses the five primary components on pages 7-2 and 7-3. Which of these components do you think may have been in play in the Kraft-Heinz situation?

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