...THE TRAVEL EXPENSE BILLING Act The Travel Expense Billing Controversy and False Claims Act PricewaterhouseCoopers LLP (PwC), a major accounting firm, was engaged in unethical billing practices that generated millions of dollars in additional revenue to the company. PwC was charging its clients the full price of airline tickets and other travel expenses, such as hotel rooms and car rentals, while it was actually expending only a small percentage of the full amount billed to its clients due to applied rebates and discounts it received under travel agencies and airline contracts and negotiations. Therefore, the company was “overcharging… clients and pocketing the difference without revealing the practice” (AccountingWeb). However, since Neal A. Roberts, a PwC employee, discovered his employer’s travel billing practices, PwC found itself in a very difficult situation. Mr. Roberts wasn’t in agreement with his company’s billing method and made several attempts to address the problem while working for his firm without much success. He reached out to the company’s ethics department and to an in-house PwC lawyer, but only managed to have the company’s policy revised, not corrected. A group of people (mostly the company’s partners) decided that under the new policy, PwC would have to disclose most of the discounts to its clients but still keep 8 percent of the rebates as a “cover our costs” fee while retaining the “millions… collected previously on the earlier rebates”...
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...Instructor: James Farmer Case # 9 (Page 628 to 630 in textbook) – The Travel Expense Billing Controversy NOTE - This is the first (of five) graded, hand-in cases and each case will be worth: 10% of your final grade Review the background material on pages 628 to 630 (in the textbook) about the case: The Travel Expense Billing Controversy and the False Claims Act and answer only the following three questions: Other than for the obvious reason of profit maximization, why would an independent audit firm, like PwC, that depends upon the maintenance of its reputation for integrity and professionalism, to retain and attract clients, risk the loss of that reputation by engaging in what appears to be unethical behaviour (not returning travel expense rebates)? Explain your answer and reasoning. In the employer – employee relationship, who has the greater duty of care: the employer to provide: i) stringent policies/controls to govern employee behaviour and ii) appropriate training so that all employees understand the implications of the policies/ controls or the employee who must carry out their responsibilities in a professional and efficient manner? Choose only one of either the employer or employee and thoroughly explain the reasons for your answer. What types of organizations are more ethical in their operations: i) “for profit” businesses or, ii) “not-for-profit” businesses? Explain the reasoning behind your answer. Each of the five cases that you will hand in during the semester...
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...September 12, 2015 Centennial College FALL 2015 Semester MGMT 703 – Section 003 Instructor: James Farmer Case #1 – The Travel Expense Billing Controversy NOTE - This is the first (of five) graded, hand-in cases and each case will be worth: 10% of your final grade Review the background material in the “Assignments” module of eCentennial about the case: “The Travel Expense Billing Controversy and the False Claims Act” and answer only the following three questions: 1. Other than for the obvious reason of profit maximization, why would an independent audit firm, like PwC, that depends upon the maintenance of its reputation for integrity and professionalism, to retain and attract clients, risk the loss of that reputation by engaging in what appears to be unethical behaviour (not returning travel expense rebates)? Explain your answer and reasoning. 2. In the employer – employee relationship, who has the greater duty of care: the employer to provide: i) stringent policies/controls to govern employee behaviour and ii) appropriate training so that all employees understand the implications of the policies/ controls or the employee who must carry out their responsibilities in a professional and efficient manner? Choose only one of either the employer or employee and thoroughly explain the reasons for your answer. 3. What types of organizations are more ethical in their operations: i) “for profit” businesses or, ii) “not-for-profit” businesses...
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...Overview Overview Section 1877 of the Social Security Act (the Act) (42 U.S.C. 1395nn), also known as the physician self-referral law, or Stark Law, intends to prevent the misappropriation of or over utilization of healthcare that could result from incentivized diagnostic ordering protocols that may be a direct result of financial relationships that could influence healthcare decisions. The law is named for its author, United State Congressman Pete Stark, a Democrat from California, who authored and supported the creation of this piece of legislation. The law’s purpose is to prohibit a physician from referring a patient for designated health services (DHS) to any organization that the physician or a member of his/her immediate family has a financial relationship. Exceptions to the law exist and will be examined in later sections of this reflection. Originally the Stark Law (Stark I) only applied to referrals of Medicare Beneficiaries, but Section 1877 of the Social Security Act (the Act) (42 U.S.C. 1395nn), also known as the physician self-referral law, or Stark Law, intends to prevent the misappropriation of or over utilization of healthcare that could result from incentivized diagnostic ordering protocols that may be a direct result of financial relationships that could influence healthcare decisions. The law is named for its author, United State Congressman Pete Stark, a Democrat from California, who authored and supported the creation of this piece of legislation...
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...Washington Headquarters Services, Executive Services Directorate, Information Management Division, 1155 Defense Pentagon, Washington, DC 20301-1155 (0730-0014). Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR FORM TO THE ABOVE ORGANIZATION. RETURN COMPLETED FORM TO YOUR LOCAL SERVING PERSONNEL/PAYROLL OFFICE. PRIVACY ACT STATEMENT AUTHORITY: P.L. 93-64; 37 U.S.C., Chapter 7, Section 403; E.O. 9397 (SSN); and DoDFMR 7000.14-R, Vol. 7a, Chapter 26. PRINCIPAL PURPOSE(S): The information will be used to determine the relationship and dependency of the claimed dependents and determine the member's entitlement to authorized benefits. ROUTINE USE(S): In addition to those disclosures generally permitted under 5 U.S.C. 552a(b) of the Privacy Act, these records or information contained therein may specifically be disclosed outside the DoD as a routine use pursuant to 5 U.S.C. 552a(b)(3) as follows: The DoD "Blanket Routine Uses" published at the beginning of the DoD compilation of systems of records notices apply. DISCLOSURE: Voluntary; however, failure to provide this information will result in...
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...employee frauds are when fraud is committed against the company or organization a person is working for. Internal frauds can include: * payment fraud Payment fraud is any fraud that involves falsely creating or diverting payments. Payment fraud can include: * creating bogus customer records and bank accounts so that false payments can be generated * intercepting and altering payee details and amounts on cheques and Payable Orders, then attempting to cash them * creating false payment and financial information to support fraudulent claims for benefits * processing false claims by accomplices for benefits, grants or repayments self authorizing payments to oneself. * procurement fraud Procurement fraud is any fraud relating to a company purchasing goods, services or commissioning construction projects from third parties. * travel and subsistence fraud Fraud relating to travel and subsistence happen when employees of a company claim for travel or subsistence expenses that are not owed. Travel and subsistence fraud can include claims for journeys that were not made, false client entertainment claims, claims for amounts higher than...
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...CPA QUESTIONS CHAPTER 3 1. For “qualifying widow(er)” filing status, which of the following requirements must be met? I. The surviving spouse does not remarry before the end of the current year II. The surviving spouse was eligible to file a joint tax return in the year of the spouse’s death III. The surviving spouse maintains the cost of the principal residence for six months. A. I, II, and III B. I and II, but not III C. I and III, but not II D. I only A. Incorrect. A taxpayer may file a tax return as a qualifying widow or widower for 2 tax years after the year in which a spouse dies provided the couple qualified to file a joint return for the year of death; that the taxpayer provided over 50% of the cost of maintaining the principal residence of a dependent child or stepchild; and that the taxpayer has not remarried as of the end of the current year. Maintaining the cost of the taxpayer’s principal residence for six months is not sufficient. B. Correct! A taxpayer may file a tax return as a qualifying widow or widower for 2 tax years after the year in which a spouse dies provided the couple qualified to file a joint return for the year of death; that the taxpayer provided over 50% of the cost of maintaining the principal residence of a dependent child or stepchild; and that the taxpayer has not remarried as of the end of the current year. Maintaining the cost of the taxpayer’s principal residence for six months...
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...Unauthorized Pay She wrongfully took $1,409,500 from the University in unauthorized pay by causing minutes of nine executive committee meetings to be created when meetings did not even take place. The payments for the meetings were referred to as leadership stipends and leadership compensation. They were typically in the form of a $65,000 lump sum. When her secretary informed her that she had no signatures confirming the meeting, Pletz stated, “Well, you’re a smart girl, make sure you just fix it.” Anyone put in this situation would feel their job safety was being threatened. So the secretary did what many people would do and photocopied signatures to put on the meeting reports. Travel and Entertainment She also submitted fraudulent vouchers to receive reimbursements for travel and entertainment expenses that she claimed were for business but they were actually personal. She traveled to places such as Florida, Wyoming, and South Carolina to visit friends and family and received reimbursements for all of them. She also received an $11,846 reimbursement for items purchased at a Vera Wang boutique at Halekulani Hotel in Honolulu, Hawaii. She also did not report the $50,291 she...
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... Chapter 1 True or False 1-1 1. True 2. False. Taxation covers person, properties, rights and transactions. 3. False. Person in taxation includes the concept of partnership, corporation, estate and trust. 4. True 5. False. Taxation as a legislative process is under the power of the legislative body, the Congress. 6. False. Taxation is the primary source of government revenue. Usually, the government resorts to borrowing if taxes collected are not sufficient to defray its budgetary requirements. 7. True 8. True 9. False. Basically, taxes imposed are based on the ability of the taxpayer to pay. 10. False. It is the primary obligation of the state to protect all the constituents regardless of whether they pay or not their tax liabilities. True or False 1-2 1. True 2. True 3. True 4. True 5. True 6. False. The President cannot delegate the power of taxation, since taxation is not vested in the President. Taxation is vested in the legislative body. 7. False. Taxation cannot be separated from the state. The moment a state exists, taxation also exists. 8. False. The making of tax law is undertaken ahead of the collection of taxes. 9. False. Levying refers to the making of tax laws. 10. False. Only the legislative body, the Congress, can grant tax exemptions. True or False 1-3 1. False. It is the legislative branch of the government that is vested with the power of taxation. 2. False. The power of taxation is restricted...
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...Analysis of Brochure | Tourism Package | | Table of Contents Introduction 3 Description of the Brochure 3 Condition, Warranty and Terms 4 Consumer Protection Act 6 Exclusion clause 7 Conclusion 8 References 8 Introduction In the tourism industry, brochures of tourism packages hold an important place. This happens because tourists need to know the options that a company may have for the tourists, so that the tourists can choose the best option available. This is another reason why critical assessment of a brochure is very crucial before it is printed. Each of the elements presented in the brochure is the way that they have the ability to make a company’s image to either fail or enhance. The duty of an advertising agency is to monitor minute details in a brochure of a particular tourist package in order to find out whether the brochure is deceptive, making false representation, offering prizes or gifts, advertising is being baited or it is unconscionable. The aim of this assignment is to show how to evaluate whether a selected brochure is as per the requirements of an excellent advertising element or not. Description of the Brochure The holiday brochure named as Spanish Spree that is a 14-day tour of two countries. There is an additional pass named as backstage pass included in the package that allows the tourists to explore the palace of Spanish royal families on the locally guided tour along with other palaces (Echtner, 2009). What is included on buying...
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... Chapter 1 True or False 1-1 1. True 2. False. Taxation covers person, properties, rights and transactions. 3. False. Person in taxation includes the concept of partnership, corporation, estate and trust. 4. True 5. False. Taxation as a legislative process is under the power of the legislative body, the Congress. 6. False. Taxation is the primary source of government revenue. Usually, the government resorts to borrowing if taxes collected are not sufficient to defray its budgetary requirements. 7. True 8. True 9. False. Basically, taxes imposed are based on the ability of the taxpayer to pay. 10. False. It is the primary obligation of the state to protect all the constituents regardless of whether they pay or not their tax liabilities. True or False 1-2 1. True 2. True 3. True 4. True 5. True 6. False. The President cannot delegate the power of taxation, since taxation is not vested in the President. Taxation is vested in the legislative body. 7. False. Taxation cannot be separated from the state. The moment a state exists, taxation also exists. 8. False. The making of tax law is undertaken ahead of the collection of taxes. 9. False. Levying refers to the making of tax laws. 10. False. Only the legislative body, the Congress, can grant tax exemptions. True or False 1-3 1. False. It is the legislative branch of the government that is vested with the power of taxation. 2. False. The power of taxation is restricted...
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...Claims – Dec 2005 Exam Section A – Multiple-Choice Questions 1. (A)(1-3) To gain an understanding of a company’s commitment to it’s clients, the mission statement is a good place to start. It underpins the philosophy the claims department will embrace for handling claims. It often focuses on the company’s core strengths, values, or culture, and could specifically articulate an approach towards handling claims. The promises made in brochures and other advertising material to promote the sale of policies should also correspond. 2. (D)(1-9) Methods used to evaluate claims handlers performance include: • reviewing all files closed by new loss adjusters to assess procedural and process issues as well as technical claims handling • a claims audit, internal or external, could assess various aspects of identified claims handling issues • policyholders could be surveyed to assess customer service issues 3. (B)(1-11) Specialists deal with one type of claim or one line of business. Loss adjusters who specialize in the more complex areas of claims handling tend to have a broad base of experience in which their work is grounded, because at the beginning of their careers they would have handled a wide variety of claims. 4. (A)(1-26) Timing issues may be artificial. Urgency can easily be confused with emotionalism. 5. (D)(2-6) When assigning claims to independent or staff adjusters, most insurers will organize their claims departments to include...
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...United States and New Zealand are the only two countries that consider direct-to-consumer pharmaceutical advertising, ethical. Drug advertising advise the consumers about key, treatable health conditions and foster doctor/patient dialogue. I believe when consumers see these advertisements they try to self-diagnose themselves and sometimes finding themselves seeking additional medical attention by going to their primary care physician. “A study has shown DTC advertising is likely to increase the demand rates of both the drug category and drug brand choices, as well as the likelihood the drugs would be prescribed by physicians.” (Woodard) Adversaries of “direct-to-consumer advertising (DTC) argue the FDA has inadequate resources and many claims make it on air.” (Woodard) The amount of regulatory actions engaged by the FDA against pharmaceutical companies and their marketing prescription drugs to consumers has tumbled intensely in recent years. In 1997 the DTC reduced the amount of information that can be delivered during broadcast ads and not stating the adverse effects it could have on a consumer. This can be a reflection of either the industry compliance is better with advertising rules or a deteriorating of FDA omission. I believe it is...
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...Review of consumer protection measures in the travel and travel related services market in Australia including the role of the Travel Compensation Fund Submission by Australian Federation of Travel Agents April 2010 Contact Mr Jayson Westbury Chief Executive Officer, AFTA 309 Pitt Street Sydney NSW 2000 T: 02 9287 9900 E: afta@afta.com.au Without a travel agent, you are on your own AFTA submission to Ministerial Council on Consumer Affairs Review of consumer protection measures in the travel and travel-related services market including the role of the Travel Compensation Fund Page 2 AFTA submission to Ministerial Council on Consumer Affairs Review of consumer protection measures in the travel and travel-related services market including the role of the Travel Compensation Fund Who is AFTA? The Australian Federation of Travel Agents Ltd (AFTA) was founded in 1957 to: establish professional standards for travel agents; stimulate, encourage and promote travel; bring together those acting as intermediaries in the distribution of travel services; and build strong working relationships with suppliers and consumers of travel related services. AFTA represents approximately 70% of Australia’s travel intermediaries that control more than 90% of travel intermediary turnover. It also has a substantial base of associate members, representing non-intermediary sectors of the travel related services industry. Members are bound by AFTA’s Code of Ethics. AFTA represents...
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...Explore The Relationship Between Criminal And Civil Law Introduction The structure of the paper is as follows.Firstly,discuss the difference between criminal and civil law,and then analyse the overlap of the two systems.finally,give some advice to a victim of a civil wrong and a crime. Body 1. distinction between criminal and civil law Criminal Law is a kind of public law, which “governs relationships between individuals and the government, and those relationships between individuals which are of direct concern to the society.” The criminal law exist to punish a person that who have committed criminal offenses. In order to punish criminals and deter crime and others they remain stable state and society. "In public law, mandatory rules prevail. Laws concerning relationships between individuals belong to private law. ” (Elizabeth A. Martin ,2003) Civil law is private law. “In England and Wales, civil law means non-criminal law. The law relating to civil wrongs and quasi-contracts is part of the civil law. “Civil law deals with the disputes between a person, organizations, or between the two, in which compensation is awarded to the victim. The main purpose of the civil law is to compensate individuals who have suffered loss or injury by the wrongful actions of other person. Civil law is different from criminal law, because it emphasises more upon punishment than on dispute resolution. (Glanville Williams,1982) The essence of the distinction of criminal and...
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