Vanderbilt Law Review Volume 23 Issue 4 Issue 4 - May 1970 Article 7 5-1970 Recent Cases Law Review Staff Follow this and additional works at: https://scholarship.law.vanderbilt.edu/vlr Part of the Administrative Law Commons, Constitutional Law Commons, and the Intellectual Property Law Commons Recommended Citation Law Review Staff, Recent Cases, 23 Vanderbilt Law Review 809 (1970) Available at: https://scholarship.law.vanderbilt.edu/vlr/vol23/iss4/7 This Note is brought to you for free and open access by Scholarship@Vanderbilt Law. It has been accepted for inclusion in Vanderbilt Law Review by an authorized editor of Scholarship@Vanderbilt Law. For more information, please contact
[email protected]. RECENT CASES Accountants-Auditors-Compliance with General Accounting Principles Not a Complete Defense To Criminal Fraud Defendants' are members of a certified public accounting firm which was retained annually by Continental Vending Corporation (Continental) to audit its financial statements. While conducting a yearly audit, defendants learned that an affiliated company, Valley Commercial Corporation (Valley),2 was not in a position to repay its debt 3 to Continental. .The president of Valley, however, offered to secure the debt personally. Defendants determined that if adequate collateral' was posted, Continental's statements could be certified without reviewing Valley's books.5 The collateral was obtained,, its value was confirmed,7 and the receivable was entered on the balance sheet8 subject to an explanation in a footnote.' The statements were 1. Defendants are a senior partner, a junior partner, and a senior associate in the national accounting firm of Lybrand, Ross Bros.