An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Priscilla A. Burnaby
Bentley College

Susan Hass
Simmons College

Susan Hartman
Simmons College

Abstract: This case can be used in external and internal auditing, financial accounting, strategy, or enterprise risk classes. The problem involves the failure of Genuity, which began with all the resources management could wish for in a private, high technology firm. In 1999, Bell Atlantic and GTE merged, forcing the joint company to divest GTEI. The company changed its name to Genuity in 2000. By December of 2002, Genuity declared bankruptcy. Students are asked to analyze Genuity’s financial statements to determine how investors should have known how poorly the company was doing and to develop a strategy that would have saved Genuity.

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