...Alia Ejaz Khan Acc 723 Case 5.1 Cardillo Travel Systems Inc. 1. Three accountants faced an ethical problem. One account, Russell Smith was the controller for Cardillo, the other two accountants were engagement partners named Helen Shepherd and Roger Shlonsky. The two engagement partners had an issue of whether they should accept the insufficient explanation agreed for a highly suspicious transaction or should they risk losing the client by simply inquiring and asking for more details about the transaction or ask them to fix that transaction. On the other hand, Russell smith had to handle an issue of losing his job because he refused to cooperate with Rognlien or go against all his ethical responsibilities and principles towards his profession. People who were mainly affected by the outcome of such issues were the stockholders and creditors of Cardillo along with the three accountants mentioned above. These accountants had a personal liability and accountability to the stockholders and creditors of the company. They are very dependent on the financial data of the company which help them to make their decisions such as investing in the company and etc. Also, part of their responsibilities was to guide them to the right pathway towards executives of the company who were the ones influencing the accountants. Moreover, part of their responsibility towards their work as well as their coworkers is to always maintain a professional relationship consisting of dignity and honesty...
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...Zach Johnson Case 2- Cardillo Travel Systems 1.) Russel Smith and Helen Shepard faced ethical dilemmas when dealing with the Cardillo Case because they were being pressured to sign off on the transaction between them and United Airlines that was misrepresented as revenue. The SEC, IRS, stockholders, United Airlines, and financial analysts would have been affected by this misappropriation of revenue. Smith owed the responsibility of good faith to all of these stakeholders because he knew what was right and the company executives pressured him into possibly altering the financial statements in Cardillo’s favor. Shepard had the responsibility to verify that the contractual agreement indeed allowed Cardillo to recognize the revenue in the 2nd quarter, but after further investigation this was not the case. Cardillo executives lied to Shepard which was very unethical, and since she caught this, Cardillo dropped Touche as their audit client. Shepard maintained independence and did what was morally correct and also correct by reporting the disagreement to the SEC. 2.) They should verify that all the numbers in the account match up to what is being portrayed on the financial statements. After that they should check each transaction in the account and question the transaction, which Shepard did correctly. She had suspicion and she took the correct path to determining the proper amount. The auditors should have immediately notified Shepard of any suspicious transactions and allow...
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...Introduction One of the major drivers of investment is the prospect of not working all your life. You can either make money through investment of your assets or simply by being employed. Well if you are looking for one of the best places to invest your money, you should consider the US. Apart from the fact that it’s the most competitive in terms of manufacturing in many fronts, there are three major reasons why you should invest here. The reasons implied above include the following: * Energy revolution The US has undergone a major shift in its energy prospects over the last couple of years; a shift which one expert once likened to the collapse of the Berlin wall. It has continued to register a sharp rise in the oil and natural gas prospects domestically. This has been precipitated by its advancement in the drilling technology. These energy resources have culminated in the provision of cheaper and abundance resources compared to any other country globally. It’s also worth noting that the local manufactures contribute to about 20% of energy consumption in the US. Additionally, the experts have projected that by the year 2015 US is set to be the largest producer of natural gas; a ranking that Russia has held on to for many years. With such a milestone, it’s no doubt that the gas prices will be cheapest here. This implies that all the manufacturers that operate on natural gas will have a competitive advantage over their competitors in other countries. Therefore this will...
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...GUIDANCE SHEET FOR BUSINESS TRAVELLER / TOURIST / FAMILY VISIT Visa Class: B1/B2 ON THE DAY OF INTERVIEW: Please make sure that you report 15 minutes before your scheduled reporting time if your interview is scheduled at New Delhi, Chennai or Kolkata. Interviews scheduled at Hyderabad Consulate will have to report one hour before your scheduled reporting time. The approximate wait time after the initial processing is likely to exceed one hour. SUPPORTING DOCUMENTS REQUIRED FOR THE INTERVIEW: 1. Current & old Passports, original blue visa fee receipt issued by HDFC bank, CEAC Bar code confirmation letter and VFS Interview appointment letter. 2. National of foreign countries may be required to pay an Issuance Fee. To check the availability as well as the issuance fee amount, log on to www.travel.state.gov/visa/reciprocity/index. The fee if any needs to be paid via demand draft in INR at the prevailing Consular rate of exchange. Note: Mention your Name and Passport number on the reverse side of the demand draft. 3. Original Birth Certificate for children below 14 years of age. 4. If you are visiting a relative, carry photocopies of the relative’s proof of status e.g. Green Card, naturalisation certificate, valid visa etc. 5. Business travellers need to produce proof that the Company will finance the trip. If the company is new or unknown it is helpful to carry tax records of the firm for the last 3 years. 6. A tourist may show evidence of financial resources through...
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...GUIDELINES FOR THE F1 VISA (STUDENT VISA) There are categories for student visa, F-1 and M-1. The F-1 visa permits students to enroll in a full-time course of academic study, leading to a degree such as the Bachelor, Master’s or Doctorate, Degree. The M-1 visa is for non-academic or vocational education for duration less than a year, and it includes courses of study in fields such as gemology, aviation, language studies, etc. All students joining Dilip Oak’s Academy apply for F-1 visa. The I-20 form issued by the university and a valid Indian passport are two essential documents for obtaining an F1 (student) visa. Your passport must be valid for at least six months from the date of travel. Once you receive I-20 forms from all the universities offering you admission you need to decide which university you wish to join. Of course even if you book a date for visa interview for a particular university, you can change that university before you appear for the visa interview, either through VFS or directly at the consulate. It is important to check the accuracy of the information printed on the I-20 form, specially: • date of birth, date of commencement, date of completion, duration of the course • full name, country of origin, name of the university and course In case of mistakes contact the university immediately and request for the corrected I-20 form. You can apply for student visa not earlier than 120 days before the date of commencement of your course as indicated on I-20 form...
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...Cardillo Travel Systems Jennifer Aponte Professor Bunney Schmidt ACC 562 May 24, 2015 Week 7 assignment Fraud is a major problem for organizations all over as it involves theft and fraudulent financial statements. As the number of individuals involved increases, fraud expands and worsen within a company since there are more people supporting the wrong acts instead of doing what is right. Cardillo Travel Systems was the largest company in the travel agency industry in the 1980’s where it was first listed on the national stock exchange. The CEO of the company was a businessman from Los Angeles, CA named Walter Rognlien and his wife, Esther Lawrence was the President and Chief Operating Officer. These individuals were mainly concerned with doing whatever needed to get done to ensure that the entity’s financial records reflect successful information. As the top executive of Cardillo, Rognlien pressured and manipulated the controller of the company, accountants and 2 partners of public accounting firms. He wanted to conceal the actual nature of a fraudulent entry in the organization’s accounting records which ended up being unsuccessful. Luckily, not all of his employees obeyed his requests to cheat the system and the Touche Ross, the auditing firm hired by Cardillo was very careful to identify the fraudulent activity and Rognlien did not get too far with his scheme. The SEC was eventually notified and Cardillo Travel Systems eventually collapsed in 1986 and the company had...
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...Licensed to: iChapters User Licensed to: iChapters User CONTEMPORARY AUDITING REAL ISSUES & CASES MICHAEL C. KNAPP SEVENTH EDITION MAKE IT YOURS! SELECT JUST THE CASES YOU NEED Through Cengage Learning’s Make It Yours, you can — simply, quickly, and affordably — create a quality auditing text that is tailored to your course. • Pick your coverage and only pay for the cases you use. • Add cases from a prior edition of Knapp’s Contemporary Auditing. • Add your course materials and assignments. • Pick your own unique cover design. We recognize that not every program covers the same cases and topics in your auditing course. Chris Knapp wrote his case book for people to use either as a core e book or as a supplement to an existing book. If you would like to use a custom auditing case book or supplement the South-Western accounting book you are currently using, simply check the cases you want to include, indicate if there are other course materials you would like to add, and click submit. A Cengage Learning representative will contact you to review and confirm your order. G E T S T A R T E D Visit www.custom.cengage.com/makeityours/knapp7e to make your selections and provide details on anything else you would like to include. Prefer to use pen and paper? No problem. Fill out questions 1-4 and fax this form to 1.800.270.3310. A Custom Solutions editor will contact you within 2-3 business days to discuss the options you have selected...
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...A CONTEMPORARY AUDITING REAL ISSUES AND CASES Seventh Edition Michael C. Knapp University of Oklahoma ; \ 1% SOUTH-WESTERN CENGAGE Learning- Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States CONTENTS SECTION 1 Comprehensive Cases 1 Case 1.1 Enron Corporation 3 Arthur Edward Andersen established a simple motto that he required his subordinates and clients to invoke: "Think straight, talk straight." For decades, that motto sewed Arthur Andersen & Co. well. Unfortunately, the firm's association with one client, Enron Corporation, abruptly ended Andersen's long and proud history in the public accounting profession. K Y TOPICS: history of the public accounting profession in the United States, scope of E professional services provided to audit clients, auditor independence, and retention of audit workpapers. ; Case 1.2 Just for FEET, Inc. 23 In the fall of 1999, just a few months after reporting a record profit for fiscal 1998, Just for Feet collapsed and filed for bankruptcy. Subsequent investigations by law enforcement authorities revealed a massive accounting fraud that had grossly misrepresented the company's reported operating results. Key features of the fraud were improper accounting for "vendor allowances" and intentional understatements of the company's inventory valuation allowance. K Y TOPICS: applying analytical procedures, identifying inherent risk and control risk E factors, need for auditors to monitor...
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