Publication Date

1-1-1989

Document Type

Dissertation/Thesis

First Advisor

Norton, Curtis L.

Degree Name

B.A. (Bachelor of Arts)

Legacy Department

Department of Accountancy

Abstract

This project explains the bankruptcies of Grabill Corporation, and Laventhol & Horwath (a major accounting firm). William Stoecker formed Grabill Corporation to rehab and resell houses. Grabill Corporation would later start buying operating companies with borrowed money. William Stoecker and his Grabill Corporation eventually borrowed about three-quarters of a billion dollars. Grabill was not financially sound, but they had financial statements audited by Laventhol & Horwath that indicated otherwise. An article in Forbes magazine cast doubt on Stoecker's claims. This made his banks nervous, and they refused to loan him additional funds. With no additional funds, Stoecker missed a loan payment and was forced into bankruptcy. This project discusses Grabill Corporation as an example of the poor audit work done by Laventhol & Horwath that led them too into bankruptcy. Laventhol's problems stemming from their overly quick growth and other audit lawsuits are discussed to show the various factors leading to Laventhol's bankruptcy. Finally, the thesis concludes by drawing a number of conclusions about the condition of today's accounting industry and what accountants can do to minimize their inclusion in lawsuits from failed businesses.

Extent

53 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type

Text

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