Balboa security v. M&M systems: Forensic accounting for determining commercial damages

The ability of accounting students to apply skills beyond traditional accounting in a thoughtful and analytical way is becoming increasingly important, especially in fraud detection and forensic accounting. This case provides an opportunity for students to use critical thinking and problem-solving skills in applying accounting knowledge to a supplier-customer commercial damages litigation matter. Students are provided with a fact pattern of a supplier-customer relationship where they analyze issues related to commercial damages stemming from sources common in real world forensic accounting cases. Students evaluate the facts, which include not only financial data but also interviews with key personnel of parties to the legal action, and demonstrate an understanding of the issues involved in the case through responses of questions regarding overriding forensic accounting and professional practice issues. Students will also prepare a written commercial damages report demonstrating the ability to effectively communicate their analyses.