Auction misconduct, silly mix-up, or something else…………?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

The Keno brothers, stars of the PBS series Antique Roadshow, have recently exhibited strange behavior that is oddly out of sync with their stature as antique world luminaries. Leslie and Leigh Keno, twins and celebrity appraisers, say they accidentally bid against each other this spring.

Questions:
1. A New Orleans auction house is suing the Keno Brothers. Explain why.
2. A Philadelphia auction house is suing the Keno Brothers. Explain why.
3. Do you think this is a mistake that should just be forgiven? Who are the stakeholders in a decision like this?
4. How could either of the auction houses record these events in their financial accounting ledgers? Consider all possibilities.
5. Do you think this situation rises to the level of fraud? Discuss.

Source:
Bowley, G. (2016). Keno Brothers, ‘Antiques Roadshow’ Stars, Face Debt and Legal Challenge. The New York Times, July 17 (Retrievable online at http://www.nytimes.com/2016/07/18/arts/design/keno-brothers-sued-by-2-auction-houses-say-they-made-a-mistake.html)
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