Accounting at Biovail - Revised

Biovail was a large international pharmaceutical company with reported revenues of $788 million. Banc of America has issued a research report which indicates that Biovail Corporation's financial statements "raised a number of issues that warrant caution for investors," and as a result, Biovail's stock was given a "sell" rating by Banc of America. A member of Biovail's audit committee is preparing for an upcoming audit meeting and considers the implications of this report for the company and for the audit committee.