Of these, 7,561 were fraudulent, generated to make Satyam look as if it had more business than it did. The invoices named 11 different Indian companies but were never received by those customers. From 2004 until the fraud came to light, sales were inflated 18 percent a quarter on average, for a total of
Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that will serve as their primary focus for corporate governance activism for the 2000 proxy season. The Focus List is made up of two retail companies, JC Penney being one of them, a bank, and 7 other corporations. CalPERS has investments in more than 1600 US companies. The 10 included in the Focus List were selected due to their long term stock performance, corporate governance practices, and economic value added evaluations. JC Penney was named on this list for its disappointing stock price relative to the retail industry.
It may have been appropriate for the auditors to make an unannounced visit to some of Crazy Eddie’s warehouses and do inventory counts. Crazy Eddie’s inventory turnover compared to their sales particularly for the year 1987 is a cause for concern. The company’s inventory turnover is the relatively low at 3.22%, yet they reported the highest net sales of all four years which was $352,523,000. Going along with that statement, Crazy Eddie’s auditors should have asked questions as to why their merchandise inventory account dropped so significantly over these four years. Since Crazy Eddie was a retail store, the sale of inventory to customers is the largest part of their revenue, therefore that account should be extensively evaluated to rule out fraudulent activity.
Assignment 2-2: Discussion Issues 1. Why is it generally more difficult to detect skimming than cash larceny? Skimming is an “off-book” fraud scheme. Cash larceny is an on-book scheme. Skimming is the theft of cash from the victim entity prior to its entry in an accounting system.
It was hard enough with just a recession, but now banks are much stricter when it comes to lending. Surveys done show that 63 percent of companies with less than 100 employees are having trouble with credit, 12 percent had to lay off employees because of it, and 1 in 5 of 600 polled are at risk of going out of business in the next six months. In a brief interview with Mr. Paul Braungart III, entrepreneur and president of Regional Capital Group, a commercial real estate lender and investment company based in Marlton NJ, Mr. Braungart explained that the crisis has impacted values of property and the ability to buy and sell. Therefore, no one’s doing anything really, which paralyzes the market because everyone’s afraid to make any potentially risky moves. The commercial real estate market isn’t as bad off as the residential market, but it has a significant ripple effect on the mind state of the nation.
From 1979 to 2006, the financial industry’s share in the nation’s corporate profits grew from a fifth to almost a third. By 2006, bankers and insurers were making 70 percent more, on average, than workers in the rest of the private sector. Then they set off again one of the worst financial crises since the Great Depression, and taxpayers bailed them out. The corruption is just not limited to Wall Street but also politicians who made money off of looking the other way. My input on this is that we did not learn anything from the crash of the stock market in 1929.
Revenue fell 4 per cent to $7.9 billion. Qantas' domestic operations reported a 74 per cent fall in pre-tax profit to $57 million, which was blamed on intense competition in the domestic market and growth in capacity. But it was overshadowed again by Qantas' international operations, which slumped to a $262 million loss compared with a $91 million loss previously. This article refers to Qantas cutting down jobs for many workers. This is an internal issue- business management; this affects the business in a negative way.
The reason, a background screening firm called ChoicePoint, which is the largest screening firm in the United States for corporate employers, had reported to Walgreens that Mr. Pendergrass had a record of “cash register fraud and theft of merchandise” totaling over $7,000. These accusations were from his previous job at Rite Aid in 2005, where his employer accused him of theft and underpaying for DVDs. Mr. Pendergrass denied the allegations and wrote
Executives and insiders knew about these offshore accounts that were mainly used to hide losses with the investors completely left in the dark. As a result their stock price was driven up. In their fallout, company executives began to liquidate their assets, trading millions of dollars worth of Enron stock. As the scandal unraveled, shares in Enron dropped from $90.00 to merely just pennies. The liquidity of most of Enron’s assets was apparent when the company reported its third-quarter results on October 17, 2001 as negative due to one-time charges of over $1 billion.
It seems only when a celebrity dies from an overdose of prescription drugs is when the sirens finally go off. Here are some facts within the last decade outlined below from the National Survey on Drug Use and Health that explains how this epidemic is destroying our teens and young adults. • In 2006, more than 2.1 million teens abused prescription drugs. (Johnston (NIDA) 2007) • Every day, 2,500 youth (12-17) abuse a prescription pain reliever for the very first time. (SAMHSA, • One-third of all new abusers of prescription drugs in 2006 were 12- to 17-year-olds.