ABSTRACT: A problem encountered in accounting information systems (AIS) education is that students sometimes do not understand how organizational risks affect firm value. This case presents a privately held restaurant that is currently under acquisition consideration by a publicly traded restaurant group that follows internal control guidance as stipulated by the Committee of Sponsoring Organizations (COSO) guidelines. The objective of this case is to present students with a causal link among (1) internal control weaknesses of a restaurant, (2) financial statement assertions, and (3) management decisions that can impact firm value. Students must identify and translate control weaknesses into the case's business valuation decision. The case is appropriate for undergraduate and graduate AIS and audit classes.

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