A lack of process meant that there were no limits to authority and rules were not followed. An example would be the way remuneration policies were adopted and how senior executives approached the chair for discussion. Risk management was also the Achilles’ heel in HIH because they showed little analytical procedures when considering their investments eg. CareAmerica, Allianz, FAI. Opportunities HIH had the capability to expand its operations and diversify into related products and it also had several acquisitions that were horizontal integration resulting in greater market share.
Target Analysis Summary We carefully reviewed Target’s 10 K report and found that Target’s auditor Ernst& Young LLP, expressed unqualified opinions on both Target’s consolidated financial statements and internal controls. Based on that, we reviewed the notes to Target’s financial statement and concluded summary in the following. According to independent auditor’s report, financial statements of Target Corporation and its subsidiaries comply with US GAAP, and Target doesn’t have significant accounting policy changes for the past year. No major development beyond the end of accounting period was found in the notes. Also, based on Target’s income statements, Target doesn’t have any revenues or expenses non-recurring in nature.
They both have a high rate of robberies, but Philadelphia has a larger robbery rate than Baltimore. Baltimore and Philadelphia had recent drops in the citizens that are willing to report crimes. Philadelphia is located in the state of Pennsylvania, and the population is estimated 1,447,395. Philadelphia has 10,170 robberies in 2010 . Over the past year the rate of robberies has increased by more than 1,000.
WorldCom’s fraud was an intentional misconduct of the perpetrated senior management that results in an $11 billion material misstatement in the financial statements via two principle forms: reduction of the reported line costs and exaggeration of reported revenues, in order to create an image of increased earnings and revenue and hold the line costs lower than the industry average rather than indicate the truth and fairness of WorldCom’s wealth and progress (Beresford et al, 2003). Here, based on the definition of SAS 99 and the summaries stated by Beresford, fraud that related to misstatements arising from fraudulent financial reporting is evident, which was mainly accomplished by the manipulation of revenues and certain expenses, such as the Corporate Unallocated revenue and line costs (capitalizing and leasing accruals of this item), and the intentional misapplication of accounting principles relating to those accounts as well. The fraud was
SCANDAL SUMMARY Tyco International operates in over 100 countries and is one of the largest makers and servicers of electrical components, undersea telecommunications systems, fire protection systems, electronic security services, specialty valves, disposable medical products, plastics, and adhesives. In January of 2002 Tyco International went under review after a tip was received that illegal transactions might be taking place. “An internal investigation concluded that there were accounting errors, but that there was no systematic fraud problem at Tyco.” [1] The accounting errors were that of the three accused managers, CEO L. Dennis Kozlowski, former Chief Financial Officer Mark Schwartz, and former general counsel Mark Belnick. “Kozlowski, Schwartz and Belnick were indicted for fraud and theft by the Securities and Exchange Commission (SEC).” [1] They were accused of giving themselves “loans” that weren’t approved or repaid, they also sold their company stock without informing their investors. Since the incident, Tyco International has replaced its Board Members and many executives and has remained a strong company.
Q2.) All three of the objectives in some way were not followed by the Huntington office nor did management try to enact the five components related to the objectives. The biggest internal control weakness was that they relied on the honesty of employees; therefore they didn’t implement many control procedures that could have significantly reduced Woody’s ability to steal from the company. There was no segregation of duties in the Huntington office which is critical to effective internal control. The sales representative (Woody, along with two other employees, was able to do any of the four types of functional responsibilities.
Almost every economy in the world is somehow related to the US economy and therefore, even a minor effect on it could have larger impacts on the economies of different countries. There are a number of problems and challenges being faced by the economy of United States today. The biggest problem, however, is the increasing debt which is considered to be the largest debt to be faced by any country. This includes household, local and state government as well as federal government debt. This debt has been accumulated over the past thirty years and has been growing much faster than the overall level of GDP.
Fraud and Risk Fraud is a serious crime that affects individuals and groups differently. Whether it is a small organization or a large firm, fraud remains a relevant risk to the success of a company. Fraud that is uncovered within a company can often indicate the end of that organization's existence, which means that companies have to take special care to protect themselves as well as the many employees who depend on them everyday for survival. The advent of fraudulent cases where individuals within organizations take advantage of a company's profits through technology or other means has created an increasing important need for companies to invest in fraud risk assessments, which helps to protect the company and its members. Cases like Enron, Madoff and other fraud cases have left companies vulnerable regarding how to resolve potential problems that may be related to fraud.
Between the short five year period from 1992-1997, the inmate population in Texas doubled itself adding approximately 70,000 (Haney 2). After achieving one of the highest incarceration rates in the nation, Texas has built and now operates 80 correction facilities to occupy the growing amount of criminals (Haney 2). In Massachusetts, the overcrowding rate is 140% (“General Information of the DOC”). These statistics seem to only be growing exponentially, so the baggage that the problem brings will only become worse as well. With this increasing number of inmates, comes a necessity for more funding and more responsibility.
Numerous Enron executives were charged with criminal acts, including fraud, money laundering and insider trading. Ben Glisan, Enron’s former treasurer was charged with two dozen counts of money laundering, fraud and conspiracy. Andrew Fastow, Jeff Skilling and Ken Lay were among the most notable top-level executives implicated of Enron’s collapse. Fastow, former Enron chief financial officer (CFO), faced 98 counts of money laundering, fraud and conspiracy in connection with the improper partnerships he ran, which included a Brazilian power plant project that was aided by Merrill Lynch, an investment banking firm. Skilling was indicated on 35 counts of wire fraud, securities fraud, conspiracy, making false statements on financial reports and insider trading.