Should the company be having cash flow issues, additional disclosure in the financial statements may be required. This would be the case if a ratio was in violation of a banking agreement or debt covenant and the debt could then be called at any time, financial statement users would need to be aware of this. Ethical Issues The Vancouver office has asked me to call CCC regarding the employee’s employment status with CCC and why the payment was made from Worldwide. This poses a couple of ethical issues as there is a potential conflict of interest as I would be doing work for both the audit of CCC as well as the ex-employee from CCC regarding gathering information for her personal income tax return. This also poses a confidentiality breach.
Rite Aid Accounting Scandal Introduction and History of the company: Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S. Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008.
Case 10-1 SolvGen Inc. Direct Drugs Inc. (Direct) is planning to acquire SolvGen Inc. (SolvGen or the Company), a publicly owned company, during the fourth quarter of fiscal year ending December 31, 2010. Direct has engaged our audit engagement team to perform due diligence procedures, with an emphasis on the review of two separate material agreements: (1) a research and development agreement and (2) a license and distribution agreement, both executed by SolvGen during the first quarter of fiscal year 2010. Direct’s management provided the engagement team with the following memo describing the Company’s revenue recognition policy: M EMO To: Audit Engagement Team From: CFO, SolvGen Inc. Subject: Revenue Recognition for Research and Development and License and Distribution Agreements Date: November 30, 2010 SolvGen Inc. (the Company), an SEC registrant, is a pharmaceutical development company. SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. (Careway) on January 1, 2010.
Midterm exam Summer 2015 The Wallace Group, Inc. SUGGESTED APPROACHES TO THE CASE: • Below is some information about The Wallace Group, Inc. This information includes data regarding corporate operations and operating problems as perceived by various managers of the company. • You should review this material then analyze critical issues facing The Wallace Group and identify solutions that The Wallace Group management could either take alone or with consulting assistance by your firm. • You will have a fictional opportunity to meet with Mr. Harold Wallace to discuss your diagnosis and action plans.
Amid this controversy, Edward Liddy, AIG’s CEO, requested the bonus recipients to return half of the bonus amount. Some Financial Products employees decided to return their bonuses; others opted to keep their bonuses. Many affected Financial Products employees felt betrayed by AIG because of repeated reassurances of the bonus payments under contractual obligations. Subsequently, Kenneth Feinberg, the federal government’s overseer of executive compensation at AIG and other major TARP recipients, played a key role in addressing the controversy over the AIG retention bonuses. He made several controversial decisions with respect to compensating AIG’s executives.
I myself have had to take out student loans and realize the difficulty in doing so. Without the guidance and help from our financial aid advisors I may have never been able to do such a thing. I feel that the financial aid system is catching a bad rap from Mr. Cuomo and his office. At the beginning of the investigation they claimed that there was an “unholy alliance” between administrators and lenders”. They targeted the entire financial aid community in that statement.
BYP 1-6 (a) Who are the stakeholders in this situation? The stakeholders in this situation would be the vice-president of finance, the president of Robbin Industries, Wayne Terrago, and the users of Robbin Industries’ financial statements. Each of these stakeholders will be affected by any choices Robbin Industries make that affect the company’s financial statements. These individuals each have something to lose by the company providing falsified or inaccurate financial statements (Weygandt, Kieso, & Kimmel, 2010). (b) What are the ethical issues involved in this situation?
4. It appears that the employer intentionally disposed of the parts. The disposal of these parts may prejudice the client's ability to recover in any product liability lawsuits against the corporations involved in the manufacture, distribution, inspection, or servicing of the conveyor. References: Putman, W. H., & Albright, J. R. (January 2013). Legal Research, Analysis, and Writing Third Edition.
Kristen Howton ACCT 562 Week 3 Assignment Professor Prevratil Case Study The case study describes a billing scheme. A billing scheme is one where false invoices are produced and processed where the checks are then turned around and cashed in by the perpetrator. A perpetrator is described as one who has committed an immoral act of wrongdoing (The DIctionary, n.d.). In the case study, the situation has arisen when a new auditor has come in and has taken a proactive approach in wanting to understand the company and how their accounts work. The auditor was originally reviewing recently submitted invoices in attempts to gain a further insight on the way the company coded, capitalized, expensed, recorded, etc, their transactions.
Group 3 – Martha Stewart: Inside Trader There are many critical ethical issues that exist in the case involving Martha Stewart, Sam Waksal and family, and Peter Bacanovic. If these unethical concerns were to be numerically ranked, with number one being the most severe, the list would be the following: 1. Sam Waskal selling his family’s shares and attempting to sell his own shares of ImClone before the news of Erbitux had been publically released, in an attempt to save their money without any concerns for how it will impact the shareholders of the company. 2. Bacanovic tipping Stewart with non-public information received from Waksal knowing fully it is illegal and ethically wrong.