...Ponzi Scheme Keller Graduate School Forensics Accounting The Bernie Madoff scam truly made history. Bernie Madoff probably would not have been able to prolong this scam without the continued help of the Accounting Firm of Friehling & Horowitz CPAs PC, who at last reported purported to audit financial statements and disclosures of Madoff firm for the last 17 years. Ponzi schemed to help Madoff by trying to go undetected because of Friehling deceiving investors and regulators by declaring that Madoff enterprise had clean audit records. Ponzi’s scheme enabled Madoff by falsely stating in annual audit reports that F & H audited Madoff financial statements pursuant to GAAP, including the requirements to maintain auditor independence and perform audit procedures regarding custody of securities. F & H purported that the financial statements conformed to GAAP and the Friehling reviewed internal controls at Madoff firm. According to SEC complaint, Friehling knew that the firm regularly distributed the annual audit reports to Madoff customers, and that reports were filed with the SEC and other regulators. The complaint alleges these statements were “materially false”. The SEC alleges that Friehling merely pretended to conduct minimal audit procedures of certain accounts to make it appear that he was conducting an audit, and then failed to document his purported findings and conclusions as required under the GAAP. If properly stated those financial statements...
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...Table of content 1. Question a 2 2. Question b 5 3. Question c 6 4. Question d 9 5. Question e 10 6. Question f 11 7. Reference 16 a) As the auditor, describe the concerns you have that may suggest fraud is occurring in the company. The Fraud Triangle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley The fraud triangle originated from Donald Cressey's hypothesis (Donald R. Cressey, 1973). The fraud triangle is a model for explaining the factors that cause someone to commit occupational fraud (acfe, n.d.). Type of fraud: Management fraud Fraudulent financial reporting Misappropriation of assets. (Arens/Elder/Beasley, 2012) ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley At the types of fraud, usually the Management fraud are including fraudulent financial reporting and the misappropriation of assets. Why the company will occurs the fraud, because the employees and managers have incentive, opportunities and attitude...
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...INTERIM REPORT 2014 GROUP SALES 1,420 70.1M $ M $ GROUP ADJUSTED NET PROFIT* $ GROUP OPERATING PROFIT GROUP OPERATING MARGIN 46.2M 4.9% “What we’ve achieved in the first half of the year.” * A reconciliation of adjusted net profit to reported net profit is detailed in note 14 of the condensed interim financial statements. Certain transactions such as the sale of properties and the release of warranty provisions can make the comparison of profits between periods difficult. The Group monitors adjusted net profit as a key indicator of performance and uses it as the basis for determining dividends and believes it helps investors to understand what is happening in the business. SALES UP 6.2% FROM $866.6M to $920.0M – 12 consecutive quarters of positive same store sales – Same store sales increased by 4.1% – Operating profit of $60.6 million – ‘House of Bargains’, ‘Home of Essentials’ SALES UP 8.6% FROM $111.9M to $121.5M – 18 quarters of positive same store sales – Same store sales increased by 4.9% – Operating profit of $4.7 million increased by 28% – ‘Work, Study, Create, Connect’ SALES 328.8M $ – Same store sales increased by 9.3% – Operating profit of $6.8 million increased by 20% – Leading home, entertainment and technology retailer SALES 47.9M $ – Acquired and integrated No.1 Fitness, Shotgun Supplements, R&R Sport – Investing to create a leading multichannel ...
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...Chapter 4--Overview of Auditor’s Legal Liability Liability to Clients-Common Law An auditor is in a contractual relationship with a client. If the auditor does not perform his or her side of the bargain according to contract terms the client can sue for breach of contract. A client may seek these remedies for breach of contract: (1) specific performance; (2) general monetary damages for losses incurred as a result of the breach; and (3) consequential damages that occur indirectly as a result of the breach. An accountant may also be sued by a client under tort law. A tort is a wrong committed which injures another person’s property, body, or reputation. A tort suit by a client is usually based on negligence or fraud. The elements of a tort action for negligence are as follows:1 A client may also sue an accountant for fraud. This tort is harder to prove than negligence because fraud requires scienter or an intent to deceive. Fraud contains these elements: A material fact is one that a reasonable person would consider important in deciding whether to act. Also, an accountant may be held liable for gross negligence by a client. Gross negligence does not require scienter but necessitates proof of reckless disregard of the truth or one’s duties. Gross negligence is referred to by some as constructive fraud. No legal question arises about a client’s right to sue (i.e., standing to sue) because the client and accountant are in privity. Privity refers to the existence of a direct...
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...conduct detailed risk assessments with There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous audit scores into consideration and conduct detailed risk assessments with (Apple – 2014 Supplier Code of Conduct). Apple has made significant progress, gaps still exist, and there is more work to do. Apple knows that workers are counting on them and they will not stop until every person in their supply chain is treated with the respect and dignity they deserve There has been no amendment to Apple Code of Conduct policy since 2014 once Apple Started taking previous audit scores into thought and conduct careful risk assessments with Suppliers World Health Organization had not been audited within the past before award the new business. In 2014, we have a tendency to reviewed 459 suppliers, and factored their responsibility performance into our choices. This engagement has allowed Apple to deal with over 700 findings associated with labor standards, employee safety, permits, environmental hazards, and chemical management before production began (Apple – 2014 provider Code of Conduct). Apple has created vital progress, gaps still exist, and there's additional work to try and do. Apple is aware of that staff square measure relying on them and that they won't stop till one and all in their provide chain is treated with the respect and dignity they merit (Apple - provider Responsibility 2015 Progress Report). industry. To track...
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...experience. Then the Auditors expressed their intention to qualify the Financial Statements due to several unresolved issues. However, Encik Zayed and Puan Hashimah tried to negotiate with the Auditor to not qualify the Financial Statements, failing which Encik Zayed planned to terminate the auditor’s appointment and appoint a new “friendly party” auditor. In addition, Encik Zayed and Puan Hashimah were not familiar with Accounting Standards and the provisions of theCompanies Act 1965, including their roles and duties as Company Directors. The company had maintained a very lean organisation and had employed their owned family members as its employees and some did not have the necessary job experiences. Time was the essence and the Audited Financial Statements had to be issued to the bank at least by September, 2006, as Encik Zayed had applied for banking facilities to implement several contracts the company had managed to secure. Encik Zayed had assigned the tasks to Cik Amy, the Finance Executive who was newly appointed by the company to analyze and provide the Auditors with the necessary clarifications and documentations. 2.0 Introduction 3.0 Analysis of the issues and recommendation Were there any abuses of power by the management and breach of fiduciary on the part of the directors from the legal perspective? Under Section 4 Companies...
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...brought together, providing the opportunity for Rotarians to broaden their knowledge of the contemporary workplace. This, in turn, enables Rotarians to fulfill one of the basic obligations of vocational service – recognizing the worthiness to society of all useful occupations. Personal Data: Name: Luis Angelo D. De Jesus, CPA Birth date: July 3, 1985 Classification: Certified Public Accountant Affiliation: Philippine Institute of Certified Public Accountant Educational Background Graduate: Master in Business Administration Republic Central Colleges Tertiary: Bachelor of Science in Accountancy Republic Central Colleges Secondary: Angeles City High School (FGNMHS) Angeles City Primary: Pandan Elementary School Angeles City Occupation/Working experience: Republic Central Colleges Angeles City College Professor - Taxation on Individual and Corporation -...
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...can be implemented to the school to prevent the recent DDoS attack the school experienced. These guidelines are by no means any requirement, however each will grant an additional layer of security for the current networks and services in production. Implement Policies and procedures An Acceptable Use Policy is a policy that defines what type of actions are allowed to be performed on the systems and network to which the policy applies. For the school, an Acceptable Use Policy may state that users of the computers and network must be performing functions related to the school such as homework, administration, research, etc. In addition to defining what is allowed, the Acceptable Use Policy should also specify what actions will be taken when a user or individual violates the policy. The acceptable use policy should be made accessible to every user. One method to do this would be to display the policy when a user logs in or direct them to where they can read the document. (Glenn, 2003.) Develop Incident Response Procedures The incident response procedures should identify the following: ← Define who the respondents are and what each individual's responsibility is ← Specify what data is to be collected and what actions are expected ◦ This would include gathering information on the attacker and a clearly defined resolution path for the team to return systems to a pre-attack state ← Details to when the team should respond ◦ Different...
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...DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND ARAB REPUBLIC OF EGYPT UPGRADING OF INDUSTRIAL SECONDARY SCHOOL PROJECT PROJECT COMPLETION REPORT COUNTRY DEPARTMENT NORTH REGION FEBRUARY 2001 TABLE OF CONTENTS Page TABLE OF CONTENTS, ABBREVIATIONS AND ACRONYMS, EXECUTIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS (i-vi) 1. 2. INTRODUCTION PROJECT OBJECTIVE AND FORMULATION 2.1 2.2 2.3 Sector Goal Project Objectives Project Description 1 1 1 1 1 3 3 3 5 5 6 7 7 8 9 9 9 9 9 10 10 10 10 11 3. PROJECT EXECUTION 3.1 3.2 3.3 3.4 3.5 Modifications Implementation Schedule Reporting Procurement Financial Sources and Disbursement 4. PROJECT PERFORMANCE 4.1 4.2 4.3 4.4 Overall Assessment Institutional Performance Operational performance Performance of Consultants and Suppliers 5. SOCIAL AND ENVIRRONMENTAL IMPACT OF THE PROJECT 5.1 5.2 5.3 Social Impact The Impact on Women Environmental Impact 6. 7. PROJECT SUSTAINABILITY PERFORMANCE OF THE BANK AND THE BORROWER 7.1 7.2 Performance of the Bank Performance of the Borrower 8 CONCLUSIONS, LESSONS LEARNT AND RECOMMENDATIONS 14 8.1 8.2 8.3 Conclusions Lessons Learnt Recommendations 14 14 15 ____________________________________________________________________________ MR. T.P. SEYA (Chief Education Expert) and MR. SURESH MUNBODT, UNESCO Consultant, following their mission to Egypt in April 2000 prepared this project completion report. Enquiries should be addressed to Mr. Bisi OGUNJOBI, Director, OCDN (Ext. 4040) and Ms. Z.B. EL BAKRI, Manager...
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...1. What internal control procedures would you recommend to remedy the control deficiencies related to tuition receipt and refund procedures? Firstly, I would recommend actions geared towards safeguarding the college’s assets, as well designed internal controls protect assets from accidental loss or loss from fraud (especially as it regards to the acquisition of tuition receipts and the ensuing disbursement of funds). Secondly, the reliability and integrity of financial information garnered by the FSD, and the information held by the different schools of the college must be ensured. Management must have accurate, timely and complete information, including accounting records, in order to plan, monitor and report business operations. Additionally, compliance is a key component to this process. Sanchou College must be in compliance with the many federal, state and local laws and regulations affecting the operations of their business actions. Lastly, it is my recommendation that the college seek to promote efficient and effective operations. This will provide an environment in which managers and staff can maximize the efficiency and effectiveness of their operations. 2. How does the tone set up by top management influence the effectiveness of internal control? The tone set by top management- the corporate environment or culture within which financial reporting occurs- is the most important factor...
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...HCS/571 Generally Accepted Accounting Principles Health care organizations are required to have financial records audited or examined at least once a year by a certified public accountant (CPA). During the audit, the CPA is looking for substantial errors, evaluating the hospital’s accounting system, and making certain that financial statements are being prepared in accordance with generally accepted accounting principles (GAAP). GAAP is a set of guidelines established by the Financial Accounting Standards Board (FASB) to determine the financial position of an organization by providing detailed information such as fiscal returns, balance and outstanding debt of the health care organization. According to Finkler, Kovner, & Jones (2007), “A few of the most common and important GAAP include the following: entity concept, going-concern concept, matching principle and cash versus accrual accounting, cost principle, objective evidence, materiality, consistency and full disclosure” (p. 183). The entity concept is the unit that is being accounted for. Entities can be the whole organization (i.e. nursing home, nursing school, surgical center, etc.) or each individual department within the hospital. When defining the entity two points must be taken into consideration: once defined the resources cannot be mixed with other entities, and the finances should be completely indicative to that specific entity. These two concepts will help keep track of the organization’s finances...
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...properly kept and no procedures and financial system were in place and lacked internal control. The auditors were not able to express a true & fair view on the accounts and recommended to qualify the audited accounts. Introduction It was July, 2006 when En Zayed engaged the external auditor Aziz & Co ( a Chartered Accountant), introduced by his friend to perform the statutory audit for the period of 2003 to 2006. This was the first audit experience for En. Zayed and Puan Hashimah and was a difficult learning experience faced by both. The Auditors expressed their intention to qualify the financial statements of the business due to several unresolved issues. However, En. Zayed and Puan Hashimah negotiated with the Auditor to not doing so. Failing to this negotiation, En Zayed and Puan Hashimah planned to terminate Aziz & Co appointment and to replace (appoint) with their new “friendly party” auditor. Interestingly, En Zayed and Puan Hashimah were not familiar with the Accounting Standards, provisions of the Companies Act 1965 and the roles and duties as Company Directors. Besides, the company maintained a very lean organization and had employed family members as their employees and a majority is without a necessary qualification and job experiences. Time was essence. The audited financial statements had to be submitted to the bank latest by September 2006 because En Zayed had applied for bank loan facilities to kick start several projects that he had secured. The task of getting...
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... Methods They have a great emphasis on getting a lot of support from Social Media and Media in general, they do this by promoting the campaign on social media, supporting a growing network of local campaigns and encouraging individual activism. As part of this work, they regularly give talks in schools and take part in debates in every part of the country. In order to support all of this, and to help themselves grow, they also run regular membership recruitment campaigns and fundraising appeals. Finances With their own website, they have a ‘Join’ tab, ‘donate’ and also a merchandise online store. With them being quite popular, that would be their main source of income, as for a yearly membership, it is £10, however, with their magnitude of members, that would be a good and steady source of income. Affiliations They are affiliated with the following: -Common Cause -AERM (Alliance of European Republic Movements) -The Reform Foundation Successes & What they are oftenly against and linked with Royal Finances: Republic asserts that there is a lack of transparency and accountability with respect to the funding of the monarchy. The group believes the royal finances should be...
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...Maria A Rivas Professor Jack Huddleston Case Study 5 HRM584 rivasmaria86@gmail.com February 05, 2015 Problems at a Glance As the Vice President of the Human Resource multinationals of the Europe I noticed that some of the protocol followed by some of the European companies is rather unethical and could use extensive measures to ensure that they are compliant. Some of issues that I was made aware of are as follows; there are strings of protests from immigrants, dissatisfaction of employment status and lack of consideration from employers, discriminatory employment practices, and possible lawsuits. According to the European Commission with regards to employment, social affairs and inclusion, “tackling discrimination at work is their goal. Workers have the right to equal opportunities, especially for men and women. It is illegal to discriminate against someone because of their racial and ethnic origin, religion and belief, disability, sexual orientation, and age” (European Commission, n.d). Therefore, it seems to me as if some of these companies are facing themselves with major lawsuits and will need guidance on how to prevent from this happening. One of the issues that triggered such discriminatory action against an individual was when a graduate student, Ewe Kikuyu, submitted her Curriculum Vitae (CV) to multiple jobs sites. Ewe comes from an African descendant and upon her distributing her Curriculum Vitae; she did not receive one phone call or an interview. She also...
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...Cliffs Natural Resources Inc. (CLF) In this paper we examine the dynamics of cross-listing, particularly US companies that cross-list in the NYSE Euronext equity-based exchange. We look at the number of US firms cross-listed in this exchange and then study one of these companies specifically, Cliffs Natural Resources, Inc. In addition, we explore the importance of cross-listing in NYSE Euronext as well as: the benefits, costs and requirements of fast path cross-listing and the trading volumes of the shares transacted in the exchange. The foundation of our case study is based on Cliffs Natural Resources Inc. (CLF), an international mining and natural resources company headquartered in Cleveland, Ohio. Formerly known as Cleveland-Cliffs Inc., the company was founded in 1847 (Yahoo Finance). CLF is North America’s larger supplier of iron ore. The Company produces iron ore pellets and metallurgical coal. CLF operates in four segments: U.S. Iron Ore, Eastern Canadian Iron Ore, North American Coal and Asia Pacific Iron Ore. In the United States, it operates five iron ore mines in Michigan and Minnesota, five metallurgical coal mines located in West Virginia and Alabama and one thermal coal mine located in West Virginia. It also operates two iron ore mines in Eastern Canada that primarily provide iron ore to the seaborne market for Asian steel producers (NYSE Euronext). As part of their growth strategy and due to its largely increased presence in the international market, CLF...
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