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Case 3 “McKesson HBOC Accused accounting improprieties”

1. Make a list of the parties that were hurt by the use of nonstandard accounting practices at HBOC. Identity the harm suffered by each party.

2. As you read this case, was there a clear point at which ethical wrongdoings became legal wrongdoings? If so, when?

3. What would motivate HBOC managers to use nonstandard accounting procedures to report increased Revenues and earnings?

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