In 2006, ORX began planning for one of the Well. The well proved to be unsuccessful, and MBW allegedly did not pay its share of expenses of $84,220.01 under the joint operating agreement. ORX filed suit for breach of contract against both MBW and Mr. Washauer personally. ISSUE The primary issue on appeal was whether ORX could sue the managing member directly or whether he was personally shielded by the LLC entity. Can the “alter ego” doctrine be applied to determine that piercing the veil of an LLC is justified to prevent the use of the LLC from defrauding creditors?
As for D, this is not for guarantee. 2-21: A. This is the definition of PCAOB. As for the text, it said that it is a quasi-government al regulatory agency overseen by the SEC in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. For B, accounting standard is not correct.
Micromanagement like this puts employees in a threatened state and unable to perform their best. Additionally, while the reward system may have appeared functional, it ultimately was very poorly designed. Employees felt incentivized to simply “impress” their superiors, which did not necessarily correlate with actual performance. Further, the assessment cloaked evaluations as a part of career development counseling, creating a conflict of interest for the auditor collecting performance information from the employees. Finally, the evaluation system failed to require managers to provide feedback to their reports, inhibiting an environment of learning or growth.
In my opinion, it is not ethical for a CPA or CPA firm to help companies “manage” their reported earnings and financial condition. The framework of Ethical Reasoning comprises five parts: Opinion, self-interest, consequence, duty, and character. This framework can help us better analyze this matter. First, opinion puts self-interest aside to see into this matter. If a CPA or CPA firm first serves as a consultant then as the given entity’s auditor, it is auditing its own work.
The new CEO would rather operate the company without interference of the “money man.” Even though, this maybe a gamble due to corrupt the thinking that would affect Beltway’s public credit. Beltway Investments could not allow it to become
Claims can be made against him by other officers of the corporation as officers to redress the wrongs,. and shareholders through a shareholder's derivative suit. Also, his dividend of the coproate funds, since not ordered by the directors, was illegal
Case 8.1 Livent, Inc. 1.) A common inherent risk that the entertainment industry company Livent, Inc had taken part in was the override of internal controls by upper management. These executives were not educated in the financial field, and should not have instructed the accounting department to make adjustments to the company’s computerized accounting system. An additional risk was how Livent, Inc would take costs for one show and place it on to another that was more successful.
1. Identify and discuss the key factors that led to the breakdown of industrial relations at HMSI. Although HMSI have good HR policies taking place, management failed to implement such HR polices creating a breakdown of industrial relations at HMSI. There were several incidents, according to the case study, that created a gap between workers and management such as the gift that employees rejected and was later directly transferred to their bank accounts. Management’s implementation of the movement sheet and strict leave policy, denying leaves even for some serious and emergency situation, as well favoritism and constant threat of termination when requesting shift changes contributed to the collapse of industrial relations.
In addition, the investors and creditors of Phar-Mor did not have a written agreement with the auditor, Coopers & Lybrand’s, defining Coopers & Lybrand’s duty. Thus, those investors and creditors are third parties but not primary beneficiaries. Consequently, Coopers & Lybrand was held not liability for the investors and creditors. On the other hand, Plaintiffs alleged that Coopers & Lybrand had recklessly audited Phar-Mor financial statements and if Coopers & Lybrand’s
The more than 30-year search for a relationship between corporate social performance (CSP) and corporate financial performance (CFP) has not brought much consistent proof of any clear motive for corporations to get involved in CSR. This could have fed the hope for society that companies really were willing to do well for society. According to Margolis and Walsh (2001), the lack of clear proof is due to a nonexisting theoretical foundation of the empirically revealed relations between CSP and CFP. The questionable quality of the performed research was also mentioned by Margolis and Walsh. They reviewed all kinds of possible studies on relationships between CSP and CFP.