The Diamonds Foods, Inc. case scenario portray the chief accounting blow up at the organization in the later phase of 2011 that was triggered by an account by Off Wall Street, a leading short selling research firm. Diamond Foods, a high flying increase business in 2011, grew into a branded snack foods maker from a walnut farmers' cooperative in 2005 on the strength of a succession of acquisitions.
The accounting scandal that affected improper bookkeeping for walnut purchases led to Diamond dropping departure of CFO and the CEO, an SEC and DOJ investigation, its high profile acquisition of Pringles, and the grounding of a higher growth company. The case scenario depicts the history along with growth of the organization; the analytical and fact-finding work conducted by OWS and allows students to comprehend consequences of the growth strategy for financial performance and valuation. Furthermore, the case highlights the role of corporate boards and audit committees in handling fiscal reporting and strategic hazards.
PUBLICATION DATE: February 13, 2013 PRODUCT #: 113055-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
