Financial Fraud at Royal Ahold

Authors: Cohen, Jacob; Hawkins, David F.; Raver, Jenifer
Source: INSEAD
Year: 2007
Company Name: Royal Ahold
Number of pages: 19

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Abstract:

The case discusses the financial fraud at Royal Ahold. It highlights the company's background and the financial issues it ran into in 2000 and 2001 and the accounting games that were played by management that led to the company's fall. Areas covered are: (1) accounting red flags; (2) accounting for inventory and consolidations; (3) risk management; and (4) restoring credibility following a financial collapse resulting from accounting fraud.