In One of the Cases in the Textbook, Michael Weinstein

Multiple Choice

In one of the cases in the textbook, Michael Weinstein was the head of Coated Sales, Inc., a company that coated fabrics for use in producing things like parachutes, helmet liners, and camouflage suits. By engaging in financial shenanigans, Coated Sales moved to the top of its industry, but ultimately the good times turned into bad times, and the company declared bankruptcy. Which of the following was a red flag that a fraud was being perpetrated?

A) A single check was used to pay off several different customer accounts.
B) The company experienced extremely rapid growth even while its competitors' growth was flat.
C) The company kept changing auditors every other year.
D) The bank account had been overdrawn on at least four occasions in one year.