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. “We’re not saying Starbucks is committing fraud, but that it is showing a pattern of behavior that is consistent with fraud,” he added.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access