Research firm Audit Integrity issued a negative report to investors and auditing firms about Starbucks Corp., warning that the coffee retailer rates poorly on several risk factors, including equity risk, class-action litigation and financial restatements.
Starbucks has very aggressive accounting behavior, said Audit Integrity CEO Jack Zwingli (pictured). He pointed to factors such as inventory turnover and receivables as red flags. Were not saying Starbucks is committing fraud, but that it is showing a pattern of behavior that is consistent with fraud, he added.
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