This Graeber Companies, Inc. case is appropriate for use in the first or second auditing course. It engages students with a realistic simulation (based on an actual company's experience) of the complexities and estimates auditors face, and judgments they must make, in the course of an audit. It also provides an application of the new standards on fair value measurement, which is one major achievement of the FASB/IASB convergence project. The subject matter covered in this case includes concepts that are usually discussed in intermediate or advanced accounting textbooks. The subject of impairment may be introduced in beginning textbooks, but most do not include an in-depth analysis or discussion of advanced cases. Although impairment is covered in greater depth in more advanced textbooks, not all of these textbooks include examples that incorporate realistic events and specific examples of the variables and different types of information companies can face in determining...

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