Hybrid Networks, Inc‪.‬

Hybrid Networks Inc. is a broadband access equipment company. The company has gone public and with sales up 400 per cent from the previous year, prospects for the company appeared very positive. Six months later, the company surprised investors by announcing a delay in filing its quarterly financial statements, and a month after that, the company admitted it was engaged in discussions with the Securities and Exchange Commission about fraudulent accounting practices. Who is ultimately responsible for the financial statements and how would analytical procedures be used to detect financial statement irregularities?