great salad Oil swindle, the
- great salad Oil swindle, the
- The popular name of a landmark 1963 U.S. court case that featured the Allied Crude Vegetable Oil Refining Corporation. The corporation’s sales were over $100 million annually, an enormous sum for the time, and the founder of the corporation was indicted (along with other individuals) on criminal charges of *fraud and deception. The indictment arose from the discovery that the corporation regularly inflated its inventory records of vegetable oil. To deceive a representative from a bank, who visited the corporation weekly to perform inventory checks, Allied Crude undertook a series of tragicomic irregularities. For example, it pumped oil from one oil tank to another as the visitor walked from tank to tank to undertake measurement tests, and in some cases it simply filled oil tanks with sea water. The case had indirect repercussions for external auditors: The swindle prompted external auditors to enhance their inventory verification tests, including the use of independent technical experts where appropriate.
Further reading: Miller (1965)
Auditor's dictionary.
2014.
Look at other dictionaries:
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