Verifone Systems, Inc. & NCR Corporation
Verifone Systems, Inc. & NCR Corporation

Manhattan College
B.S. Accounting and Finance
Professor Phillips
MBA 609-01
Alison Landy
5/3/12

Table of Contents I. Executive Summary Page 3 II. Description of the Companies Page 4 III. Description of the Industry Page 4-5 IV. Business Risk: Nature of the Industry Page 5 V. Business Risk: Economic Climate Page 5 VI. VeriFone Governance Structure Page 5-7 VII. NCR Governance Structure Page 7-8 VIII. Restatement Page 8-12 IX. Business Risks: The Company Page 12-13 X. Accounting Policies and Disclosure Practices Page 14-16 XI. Financial Statement Analysis Page 16- 18 XII. Conclusion Page 18-19 XIII. Exhibits Page 20 XIV. Reference Page 21

Executive Summary

VeriFone Systems, Inc. is a company who was involved in fraudulent financial accounting. After examining their financial statements and other public information prior to the restatement, an analysis was done to determine whether information about the fraud was present. In addition, this paper will have a comparative analysis with a company called NCR Corporation, which is in the same electronic payment industry. A comparative analysis will be done on both financial and nonfinancial information regarding accounting policies and disclosure practices in regards to both companies.
There are many business risks associated with VeriFone’s restatements that are addressed when describing the industry, the company, and the economic climate. VeriFone had many internal control weaknesses that provided management with the opportunity to commit fraud in regards to inventory and net revenue accounts.
There is a review of the governance structure of both VeriFone and NCR that describes the Board