The company leased clients a CD containing a risk management application priced at $30000 annually per user and was password protected, after that clients paid by the month for the new password. Organizational Structure Since RiskMetrics Group was a new company, that formerly was a subsidiary of J.P Morgan, Berman used FLAT organizational structure. There were pro’s and con’s by using this kind of organizational structure: Competitive Advantage One of the major competitive advantage of RMG is its payment method. They use leasing payment method to attract costumer and make the costumer financial burden lighter. II.
Executive Summary Fraudulent financial reporting can have adverse effects on companies, as well as, public confidence in capital markets. This paper examines financial statement fraud and analyzes the financial statement fraud that occurred at Rite Aid in the early 2000’s. The result of Rite Aid’s fraud, as well as many other major accounting scandals, led to the creation of the Sarbanes-Oxley (SOX) Act of 2002. SOX supports the growing need to restore consumer confidence in accounting and reporting practices. Companies want to put their best foot forward when they release financial statements.
Although the unpaid taxes for 2000 and 2001 were also substantial, the government suggests that the jury may have given St. Pierre the benefit of the doubt as to her understanding of her obligations prior to 2002. By the time she signed her 2002 return, a tax audit was underway and St. Pierre had told IRS auditors that she understood her obligation to report company income. 2. See United States v. Chesson, 933 F.2d 298, 305 (5th Cir.1991)(“[W]here a defendant attributes underpayment of taxes to his accountant's failure to discover and rectify improper expenses, the question of willfulness is not removed from jury consideration.”); accord United States v. Olbres, 61 F.3d 967, 970-71 (1st Cir.1995). 3.
* June 2011, Netcrawler granted Michelle an employee stock option, valid until 2013 to acquire up to 1,000 common shares of Netcrawler at $20 per share. * April 30, 2012, Michelle exercised her stock option and acquired 1,000 common shares of Netcrawler at $20. * Michelle already owned 1,000 Netcrawler shares she previously brought from ex-employee for $10,000 * On same day she exercised her option, Michelle sold all 2,000 Netcrawler shares for $70,000 to an arm’s length party. Issue to analyze Michelle will like to know the tax consequence of her buying 1,000 shares of Netcrawler and selling 2,000 shares in the same year. Analysis based on above information Michelle is deemed to have received a benefit under 7(1), an employee acquiring the shares of an employer is said to not be dealing at arm’s length.
Clarkson Lumber Company Clarkson Lumber Company is in retail distribution of lumber products. It was founded by Mr. Clarkson and his brother-in-law, Henry Holtz in 1981. In 1994, Mr. Clarkson bought out Mr. Holtz’s interest for $200,000, payable in 4 semi-annual instalments from June 30, 1995 with interest @11% p.a. Firm has achieved good growth in sales and profits during recent years, but is facing shortage of cash. It expects sales of $5.5 million during CY 1996 and would need additional loan over and above existing loan of $399,000 as on March 31, 1995.
This source is relative to my auditing collusion research because it discusses audits that are failing due to collusion and many other facets of fraud in the work place. Chauhan, A., & Kenkre, M. (2011). Fraud Investigations - Employee Fraud. Credit Control, 32(3/4), 8-17. Retrieved from
Seminar 3 Negligent Misstatement (Summative) Hedley Byrne & Co Ltd v Heller & Partners Ltd [1963] 2 All ER 575 Whether and under what conditions a person can recover damages for loss suffered by reason of his having relied on an innocent but negligent misrepresentation. Hedley [the appellants] were advertising agency who had made some advertising work for Easipower. Hedley was responsible for any amount which was not paid by Easipower since they have to pay for advertising orders. Later on Hedley became curious about a financial position of Easipower to afford another advertising which Hedley may give them on credit. The bank of Easipower [the defendant] gave a report of Easipowers financial position that they have enough resources for ordinary business proceedings, but stated that the report was given "without responsibility."
In order to decide the best plan of financing this project, Amtrak and it’s advisor, Babcock & Brown Financial Corporation (BBFC) asked BNY Capital Funding LLC (BNYCF) to come up with lease-financing proposals. On April 30, 1999, Arlene Friner, the CFO of Amtrak presented these proposals for financing Acela to her Treasury team. A present value analysis is used to determine whether borrowing money, leasing the equipment, or relying on federal funding is the best option for financing the project. Discussion Acela is projected to produce $180 million in net revenue by 2002. This includes the purchase of 15 high-speed locomotives and 20 train sets of $750 million, of which Amtrak needs financing for six locomotives and seven train sets of $267.9 million.
Introduction How would 104 million dollars change your life? For most, it would make a dramatic difference. An ABC news article from 2012 lists a few major whistleblowers that blew the whistle on their employers and received millions of dollars. Bradley Birkenfeld, an ex-banker, was rewarded 104 million dollars from the IRS. Cheryl Eckard, a former employee of Glaxo Smith Kline was awarded 96 million dollars (ABC ARTICLE).
Two accounts that had been written off as uncollectible in 2005 were collected in 2006. One account for $2,108 was $1,566 was made by the Hollowell Company on another account that originally had amounted to $2,486. The controller would be paid in full because reliable reports were circulating that the trustee in bankruptcy for the Hollowell Company the dollar. 5. The Allowance for Bad Debts was adjusted to equal 3% of the balance in Accounts Receivable at the end of the yea Questions: 1.