Jason Tierro, an inventory Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This year, Jason was very busy due to a shortage of personnel at the company, so he decided to just estimate the amount of ending inventory instead of doing an accurate count. He reasoned that he could come very close to the true amount because of his past experience working with inventory. Besides, he was sure that the sophisticated computer program that Lexmar had just invested in kept an accurate record of inventory on hand.
There were some WorldCom directors who made entries, but didn’t know what they were for and GAAP support (Mintz & Morris, "Case 2-1 Cynthia Cooper and WorldCom," 2011). An audit committee meeting took place, where the truth was reveled about the “prepaid capacity” and the misleading entries. It was mentioned that there were good business reasons but no accounting rationale for the entries (Cynthia Cooper and WorldCom). According to Mintz, “the due care standard calls for continued improvement in the level of competency and quality of services by performing professional services to the best of one’s abilities” (Mintz and Morris, Ch.1, 2011). Mintz, S. M., & Morris, R. E. (2011).
Evidence showed that she had several promotions while being employed and that her job performance were averages. The court did not hold the Paper Magic Group liable because the plaintiff could not provide adequate evidence of age discrimination. A case similar to ours, Goldmeier v. Allstate refers to constructive discharge regarding religious beliefs. The plaintiffs claim that Allstate violated their religious beliefs after the company announced that offices would remain open Friday evening and Saturday mornings (Goldmeier, 2003). Evidence showed that Allstate offered the plaintiff’s time to observe their holy day but they would have to work another day.
In addition, departmental resources were used for personal projects of the three identified executives. The task force also uncovered an additional $4,000,000 of expenditures that were poorly documented so that even the amounts for proper business purposes could not be identified. The task force noted that these payment practices, as well as LEA, were never disclosed in the Internal Audit Department's audit reports even though company disbursements were tested annually. References to these practices and LEA were included on two occasions in
However, with the persuasion of a few willing individuals along with his high ranking position in the Navy, he was able to orchestrate this scheme to perfection before ultimately getting caught in February of 2011. This scheme took place over a twelve year period from 1999 to 2011 when he used his position in the Navy to direct Russell Spencer, a computer specialist, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow. This money was disbursed amongst Mariano and close relatives over a long period of time. Mariano has admitted that little to no work was done for Spencer to receive this money that ultimately ended up in the pockets of Mariano. Ralph has admitted to receiving $3,081,671 of Navy funded checks from Spencer.
The responsibilities of an audit partner in an accounting firm is to review the accounting actions performed by their client and notify them of any corrections that are required. The CFO of a large public company should oversee all of the company’s finances so that it is steered in the right direction. The audit partners role is weighted heavier in that their responsibility is to the public, not just one company. If the CFO is unable to do his/her duties, then the audit partner should find and report those inaccuracies. The stress of the audit partner is tremendous and choosing that profession is one that I would prefer not to undertake.
In this situation, the company failed to report the write-off of uncollectible receivables and ignored discounts on outstanding receivables for large customers who were struggling to sell Leslie Fay’s products. With regards to the inventory account, Leslie Fay had been known within the industry to be behind the times with the latest fashion. Because of this, it would be reasonable to expect the company to report significant write-offs of inventory for items they were not able to sell, however, the inventory account actually increased over the examined time period. Accounts
The employees are affected because if something was to go wrong they may lose their job because of the company faults or not get paid like they should. Other that may be affected by this are stockholders, customers, consultants, independent contractors, and auditors themselves. Ethical Values: What ethical values are demanded of auditors and accountants? Integrity is important because it requires accountants to be honest, candid, and forthright with a client’s financial information. Objectivity and independence remain free from conflicts of interest and other questionable business relationships when conducting accounting services.
INTRODUCTION At times we may wonder what is meant by ethics, why accountants need ethics in their business life or even how they are related. As we may know, definitions of ethics vary with time but in most cases it is defined” With these definitions we can understand that basically ethics is knowing what is right (Mitchell 2009). Ethics in accounting and finance a global concern today (Onyebuchi, 2011). However, the accounting and finance sector has over the past years developed a culture of ethical misconduct (Gianneti & Yue Wang, 2014). According to Anup & Chadha (2005), Ethical misconducts often lead to corporate scandals that come with serious consequences e.g.
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.