Giant Retail Company is a large American retail discount store and a listed company. Due to the pressure of competition, the company falsified accounts payable, sales receipts and purchase price difference receipts, and changed the operating loss of $2.5 million in 197 1 into a profit of $0.5 million. However, the relevant partners of Tachilos Certified Public Accountants who audited the company were "compromised" because of the unreasonable requirements of the company, such as changing the audit partner and expelling an assistant auditor from the firm. Let the audit assistant find the fraud suspect in the company instead of checking it. What's more, when Tachilos discussed the problems found in the audit with Giant Retail Company, the relevant personnel of Giant Retail Company calculated all the financial indicators face to face, and the principle of accepting Tachilos' adjustment opinions was whether the expected goals could be achieved.

1972 giant retail company submitted the annual financial statement of 197 1 and the unqualified audit report issued by Tachilos Certified Public Accountants to the US Securities and Exchange Commission, and applied for and was approved to issue 3 million US dollars of common stock. It also received a loan of $654,380.2 million. However, in 65,438+0973, the company suddenly announced that due to potential accounting errors, the reported income of 65,438+09,765,438+0 may be affected. About a month later, Tachilos withdrew the unqualified audit report. In August 2003, Giant Retail Company submitted it to Boston Court. Two years later, the court declared the company bankrupt and the relevant personnel of the company were convicted. After investigation, the US Securities and Exchange Commission severely condemned Tachilos Accounting Firm and suspended its partner in charge of the audit of Giant Retail Company for five months before the federal court handled the matter. At the same time, the US Securities and Exchange Commission asked an independent expert to serve as a juror to conduct a large-scale inspection of the audit procedures of Tachilos Accounting Firm, including the independence of the firm and how to accept the appointment.