Hollate manufacturing case study solution

I’m studying for my Accounting class and need an explanation.

Just read the case and answer the related questions. Fully answer what the questions are asking and make every point clear.Hollate Manufacturing Case Study About this case study: This case study was developed as a joint effort by the Center for Audit Quality, Financial Executives International, The Institute of Internal Auditors, and the National Association of Corporate Directors. These four organizations have formed the Anti-Fraud Collaboration to actively engage in efforts to mitigate the risks of financial reporting fraud. The Collaboration’s goal is to promote the deterrence and detection of financial reporting fraud through the development of education, programs, tools and other related resources. For more information about the Anti-Fraud Collaboration and its resources please visit www.AntiFraudCollaboration.org. © Copyright 2013 Jack Brennahan had his dream job. He had always wanted to head a manufacturing company and five years earlier he received that opportunity at Hollate when he was promoted from the CFO position. He enjoyed the work, the exciting environment he had helped create, and the people around him. As CEO, however, Brennahan understood that the buck stopped with him. He took his responsibilities seriously both in running a successful business and ensuring that the business met all regulatory requirements and ethical expectations of being a good corporate citizen. He never wanted to be ashamed of anything he read in the newspaper about Hollate. Brennahan, however, had just received a call from Cara Porcini, Hollate’s external auditor, followed immediately by a call from Mike Soltany, Hollate’s audit committee chair. They had news that stopped him cold. Hollate Hollate began manufacturing products for the home construction industry in the 1950s. For most of its history it comprised one division that made windows and doors for the Southeastern region of the United States. These products were sold under several privatelabel and store brand names. Seven years earlier, two years before Brennahan became CEO, Hollate acquired a Midwestern door and window manufacturer that also had a division that made roofing products. The acquisition enabled Hollate to gain access to new geographic and product markets, and also gain economies of scale in management and in raw material purchasing. Following this acquisition,