The second mistake involved Ernst & Whinney, which was the auditor for ZZZZ Best after Greenspan was let go. During the interview between Greenspan and the congressional subcommittee, Greenspan reported that Ernst & Whinney never got in touch with him to talk about ZZZZ Best and to hear his side of the story as to the reason of ZZZZ Best letting him go. Had this conversation occurred, Greenspan might have been able to discuss his neglection to inspect the insurance restoration sites, which therefore could have given Ernst & Whinney a heads up to do so. Ernst & Whinney should have contacted Greenspan because it's a normal protocol to adhere to, and because it could have stopped the fraudulent acts of ZZZZ Best
The courts ruled against Mack as by backdating his payment for the fertilizer, he was trying to reduce his tax liability. Tax evasion is breaking a civil statute and falls under statutory illegality. Hence, the courts deemed the agreements to be unenforceable (Weir, D. Jan, Pg 147). There are two impacts of this case on a certified general accountant (CGA). The first impact is skills development.
The company should have been able to follow up with all venders and customers to attest to the validity of the financial statements and they were not able to do this and not able to gather the “appropriate and sufficient evidence” needed. When a client will not allow the auditor to gather evidence needed to perform a correct auditor then the opinion can be affected. The auditor cannot attest to the fairness of the financial statements if the evidence is lacking or
Kevin Pfeiffer, a computer technician on new hire probation, was asked to act unethically in regards to an insurance claim. He made an ethical decision to not participate in the unethical practices of insurance fraud carried out by the organization. Kevin’s manager, Antonio Melendez was familiar with the rumors of the alleged insurance fraud; however, this was the first time a fraud situation was brought to him directly. This analysis will focus on the ethical dilemma faced by Antonio and discuss strategies for addressing the situation. Analyze the ethical dilemma faced by Antonio The ethical dilemma that Antonio faced was weather to report the issue to the proper corporate officers himself, have Kevin Pfeiffer make his own decision regarding the issue, or ignore the issue altogether because the insurance proceeds will benefit the organization as a whole.
3. St. Louis testified that while he had told his manager “there ha [d] been unreasonable delays on Mr. Hallee's part” in responding to the audit, he had refused to sign a letter formally accusing Hallee of the same. St. Pierre, claiming that this left the jury with the mistaken belief that St. Louis felt positively toward Hallee, wanted to cross-examine St. Louis regarding evidence that St. Louis, when asked by IRS personnel for names of tax preparers that they might investigate for misconduct, had recommended Hallee's firm to them as a possible
Hugh McBride is the newly appointed Chief Executive Officer of McBride Financial Services. The company offers one-stop decreased mortgage services within the Dakota’s, Wyoming, Idaho, and Montana. Huge McBride has been involved within discussions that maybe described as unethical or illegal in the scenario. Presented in this paper are the study of problems and issues that McBride Financial services could experience because of the lack of impecunious decisions carried out by the company’s CEO. Hugh McBride will address who the company’s stakeholders are, define the end-state vision, identify and evaluate alternatives, identify and access the risk of the alternatives, recommend optional solutions, create and implement solutions, and to access the outcomes.
Financial Statement Fraud Schemes Taisha Ransom ACC-556 September 30, 2013 Kimberly Warren Financial Statement Fraud Schemes Financial statement fraud is the “deliberate misstatements or omissions of amounts or disclosures of financial statements to deceive financial statement users, particularly investors and creditors” (Wells, 2011, p. 6). A fraud investigator has been assigned to Apollo Shoes, Inc. to determine what type of fraud schemes are likely to be present in the company. The investigator will make this determination based on the nature of business at the company and any evidence presented. The following brief will describe evidence the fraud investigator must collect to determine if fraud is present. The briefly will also
It cause overstate inventory and understate the cost. Therefore, this has become the key factor of inherent risk. (2) The first risk is Company does not set internal oversight Institutions. In this case, shareholders did not set the relevant oversight institutes, but they firmly believe CEO (Hebding) decision, which led to the failure of internal control environment, in this case, Hebding can create different fictional accounts, aimed at the data meet the requirements of shareholders, but his aim is to deceive shareholders, and to reap more benefits. For example, Hebding instructed his employee to make false account such as understate expense, overstate equipment and inventory and so on.
The Public Company Accounting Oversight Board today issued for public comment a Staff Consultation Paper on standard-setting activities related to auditing accounting estimates and fair value measurements. The paper was prepared by the Office of the Chief Auditor as part of its outreach efforts to seek input related to the potential need for changes to the PCAOB standards in this important area and a possible approach for a new auditing standard. PCAOB inspection staff have continued to identify numerous audit deficiencies across various types of estimates, across various sizes of audit firms. "Accounting estimates and fair value measurements can be subjective and complex, yet they can be an important part of a company's financial
The last section will provide recommendations for improvements to the managerial structure to establish better customer service and employee satisfaction. Review of Managerial Decisions and Impact An inquiry of the administrative decisions of Mr. Cheet and the effects of his decisions affecting the organization was conducted. The sections below will discuss the issues discovered, their correlation to Mr.Coffee's business structure, and the overall effect they have had on his company. Planning Within the context of the planning framework connected to the business, Mr. Cheet made many decisions that were counterproductive to the mission and vision statements instituted by his employer. First reviewed was Mr. Cheet’s decision to change the company’s supplier to one of his choosing.