To be prepared for classroom discussion, instructors will need to read through the 8-K, Item 4.01, as filed by Molex, and the Exhibit 16.1 attachment written by Deloitte. To illustrate some of the issues for class discussion in this manuscript, the author focuses on Item 4.01, Paragraph 6 of the 8-K filed on November 18, 2004 by the management of Molex, and the response to Item 4.01, Paragraph 6 written by Deloitte, which was filed by Molex on behalf of Deloitte in the 8-K/A, Exhibit 16.1 on December 1, 2004.
In Item 4.01, Paragraph 6, of the 8-K, the management of Molex stated:
Deloitte took issue with the “profit-in-inventory” (PII) elimination. In the letter written by Deloitte (Exhibit 16.1), Deloitte directly responds to statements made in Paragraph 6 by the management of Molex. Deloitte response includes the following:
Instructors should discuss with their classes that Deloitte addresses the Molex 8-K,...
