Dell Computer Case on Financial Reporting 1. In his analysis of the Dell fraud for Forbes, Edward Hess comments: "Too often, the market's maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it did at Dell

Dell computer case,Dell Computer Case on Financial Reporting 1. In his analysis of the Dell fraud for Forbes, Edward Hess comments: "Too often, the market's maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it did at Dell. That behavior produces non-authentic earnings that obscure what is happening in the business. Short-termism can result in a range of corporate and financial games that may enrich management at the expense of market integrity and efficient investor capital allocation." Comment on Hess's statement from two (2) perspectives: earnings management and financial analysts' earnings projections. 2. Explain the difference between financial statement fraud and disclosure fraud. How did Dell use each one to produce materially misstated financial results? 3. Do you agree with the court's opinion that PwC did not act with fraudulent intent, therefore, not holding it legally liable? How can fraudulent intent be established in a case like Dell?