ACCOUNTING & AUDITING

Research accounting and auditing standards and current emerging issues



Research accounting and auditing standards and current emerging issues

Futrex Incorporation

Solution 1

“Dream Beam”, a product of Futrex Inc., was a handheld medical laboratory device that supposedly could assess the glucose level in blood of a person, by exposing his/her finger to the infra-red light.

Solution 2

Mr. Rosenthal, president of Futrex Inc., violated 1933's Securities Act Section 17 (a), 1934's Securities Act Section 10 (b), and the Rule 10b-5 (AICPA, 2007). The company made incorrect and deceptive claims to the potential investors about the “Dream Beam” product. Futrex and Rosenthal enticed ...