...Jamaica Water Properties A Case Study The case is about an accounting fraud that involves the Jamaica Water Properties, Inc. The fraud was characterized by misapplication of purchase method of accounting for acquisitions, recording fictitious assets, improper accounting for NOLCO, non-recording of appropriate allowances for uncollectible receivables, and misapplication of the percentage-of-completion method of accounting for long-term contracts. Ernest Grendi made the fraud possible, company CFO as helped by three senior accountants. These were aimed to inflate the price of the company stocks because of overstated earnings that caused them to receive sizable bonuses. However, JWP internal auditors just tolerated all of these because of their fear of being fired. In addition, Ernst & Young, the company’s external auditor, knowing the fraudulent activities, have been issuing an unqualified opinion for six consecutive years. This has been seen as a product of the close relationship between Grendi and his co-conspirators with E&Y. 2011 JAMAICA WATER PROPERTIES: A Case Study Jamaica Water Properties A Case Study The case is about an accounting fraud that involves the Jamaica Water Properties, Inc. The fraud was characterized by misapplication of purchase method of accounting for acquisitions, recording fictitious assets, improper accounting for NOLCO, non-recording of appropriate allowances for uncollectible receivables, and misapplication of the percentage-of-completion...
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...Jamaica Water Properties A Case Study The case is about an accounting fraud that involves the Jamaica Water Properties, Inc. The fraud was characterized by misapplication of purchase method of accounting for acquisitions, recording fictitious assets, improper accounting for NOLCO, non-recording of appropriate allowances for uncollectible receivables, and misapplication of the percentage-of-completion method of accounting for long-term contracts. Ernest Grendi made the fraud possible, company CFO as helped by three senior accountants. These were aimed to inflate the price of the company stocks because of overstated earnings that caused them to receive sizable bonuses. However, JWP internal auditors just tolerated all of these because of their fear of being fired. In addition, Ernst & Young, the company’s external auditor, knowing the fraudulent activities, have been issuing an unqualified opinion for six consecutive years. This has been seen as a product of the close relationship between Grendi and his co-conspirators with E&Y. 2011 JAMAICA WATER PROPERTIES: A Case Study Jamaica Water Properties A Case Study The case is about an accounting fraud that involves the Jamaica Water Properties, Inc. The fraud was characterized by misapplication of purchase method of accounting for acquisitions, recording fictitious assets, improper accounting for NOLCO, non-recording of appropriate allowances for uncollectible receivables, and misapplication of the percentage-of-completion...
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...in order to recover. Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity’s name. 2 The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring: That mergers be allowed if United States competitiveness in world markets is improved. That failing companies are rescued through mergers whenever possible. That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms. That certain activities are classified as per se violations. 3 The landlord has the right to enter the leased premises: To make necessary repairs Only if specifically provided in the lease To inspect for waste To inspect for illegal use 4 Which for of real property ownership includes the greatest degree of ownership? Fee simple defeasible Fee simple limitless Absolute life estate Fee simple absolute 5 A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as; The public use doctrine The fair use doctrine The bar to patents doctrine The public service doctrine 6 This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of...
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...in order to recover. Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity’s name. 2 The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring: That mergers be allowed if United States competitiveness in world markets is improved. That failing companies are rescued through mergers whenever possible. That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms. That certain activities are classified as per se violations. 3 The landlord has the right to enter the leased premises: To make necessary repairs Only if specifically provided in the lease To inspect for waste To inspect for illegal use 4 Which for of real property ownership includes the greatest degree of ownership? Fee simple defeasible Fee simple limitless Absolute life estate Fee simple absolute 5 A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as; The public use doctrine The fair use doctrine The bar to patents doctrine The public service doctrine 6 This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of...
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...by a wealth of information about the different services that are provided under cash management. They have services that include, speed up receivables that are merchant services, remote check deposit, and business lockbox. Merchant services are a faster alternative to allowing customers to purchase your goods or services. Remote check deposit shows you electronic images of deposited checks with easier reconciliation of discrepancies. Business lockbox allows Citi Bank to receive checks on your behalf and deposit them according to your specific instructions. Their cash management services also include control payments, which are, payroll manager, business credit cards, business debt master cards, wire transfers, controlled disbursement, and business online automated clearing house origination. Payroll manager allows you to quickly and efficiently calculate your businesses payroll so you can pay your employees and file payroll taxes. Business credit cards and the business debt master credit cards are an easy way to track your day to day transactions, see what and where employee purchases are coming from, and can also serve as a line of credit. Wire transfers permit a quick and secure transfer of money to companies all over the world in both US and foreign currency. Controlled disbursement is primarily used to both forecast and manage daily cash outflows. Business...
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...Background of the Study 4 Statement of the Problem 4 Purpose of the Research 5 Research Questions 5 Significance of the Research 5 LITERATURE REVIEW 7 CONCLUSION AND RECOMMENDATIONS 19 ABSTRACT This paper investigates White Collar Crime (“WCC) in society and the affects it has on businesses in today’s society, the cost and statistics involved with white collar crime and the difference in how white collar crime and street crimes are dealt with. While white collar crime has existed for many decades, I have conducted research regarding the definition of white collar crime, the history of white collar crime, the different types of white collar crime that affect businesses directly and indirectly, goals of white collar crime, fraud statistics and the cost factors related to white collar crime. White collar crimes and business ethics play hand in hand with one another and often cross the line with one another into criminal behavior. White collar crimes have played a very instrumental part in our downward economy over the past five years, and the level of trust given by society to corporations and employers entrusted with their life earnings has changed dramatically. My research will include factors that contribute to this problem and how white collar crime affects the management and operations of business organizations; what part modern technology plays in white collar crimes being committed; and what positions our society and government have taken on dealing with...
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...is available and the desire for it. The demand or supply of a good or service by a consumer will be a factor in regulating prices. In the case of the luxury tax that was implemented the demand for the goods changed and people found substitutes or other alternative to replace their needs. This change is not dependent on the status (lower, middle or upper class) of a group or individual. Incentive work – this is the things that encourages or motivate a person to do something. Humans on a hold are slaves to their own reward systems and will do what it takes to get rewarded. In this chapter there are clear examples. People are willing to work harder if they will pay taxes in a lower tax bracket, while on the other hand, people are willing to stay home and live off government grants and benefits – subsidized housing and health food stamps, etc, than paying high rate employment tax to the government. This point also ties in with opportunity cost that will be defined and discuss below. Opportunity cost- this is the value of the best forgone alternative or in layman language it is the value of giving something to get another. People are not willing to give up a life of welfare where things are free to go out into the working world to pay higher bracket income taxes to the government. If the government provided lower corporate tax rates and tax breaks people will be more willing to get a job than to stay home and collect welfare. This is...
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...at split-off or process further Scrap or rebuild Skills Analysis Analysis, judgment Analysis, judgment Analysis, judgment Analysis Analysis, judgment Analysis Analysis Analysis Analysis Exercises 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 Learning Topic Objectives Skills Accounting terminology 1–5 Analysis 1, 2 Analysis, communication, Real World: Home Depot judgment Incremental, sunk, and opportunity costs 1–3 Analysis Incremental analysis: Accepting a special order Scarce resources 1–4 Analysis Special order decisions and opportunity costs 1–4 Analysis Incremental analysis: Make or buy decision Make or buy decision Sunk costs: Scrap or rework decision Scarce resources Joint products 1–4 1–4 1–4 1–4 1–4 Analysis Analysis Analysis Analysis Analysis, communication, judgment Analysis Analysis, judgment Analysis Analysis, judgment Analysis, communication, research 21.11 21.12 21.13 21.14 21.15 Joint processes: Sell or process further Pricing a special order Evaluating a special order Scarce resources Real World: Home Depot’s charitable contributions 1–4 1–3 1–3 1–5 1–3 © The McGraw-Hill Companies, Inc., 2012 CH21-Overview Problems Sets A, B 21.1 A,B 21.2 A,B 21.3 A,B 21.4 A,B 21.5 A,B 21.6 A,B 21.7 A,B 21.8 A 21.8 B Topic Evaluating a special order Make or buy decision Make or buy decision Determining the most profitable...
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...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. 1. Which of the following cases would you like to include? Section 1: Comprehensive Cases 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Enron Corporation Just for FEET, Inc. Jamaica Water Properties Health Management, Inc. The Leslie Fay Companies Star Technologies, Inc. Lincoln Savings and Loan Association Crazy Eddie, Inc. ZZZZ Best Company, Inc. United...
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...(NASDAQ: VRSK) provides information about risk to professionals in many fields, including insurance, healthcare, financial services, supply chain, and others. Through its renowned ISO brand, the company has delivered data, analytics, and decision support services for the property/casualty insurance industry for more than 40 years. Using advanced technologies to collect, analyze, develop, and deliver information, Verisk Analytics helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, Verisk Analytics employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com. Financial Highlights Revenues $ Millions 1,500 GR CA .5 = 14 % Adjusted EBITDA $ Millions 700 600 500 1,200 GR CA 5. 3 =1 % 900 400 300 200 600 300 100 0 2008 2009 2010 2011 2012 0 2008 2009 2010 2011 2012 2012 Sources of Revenues 2012 Revenues by Operating Segment Decision Analytics: 62% Property/Casualty Insurance: 32% Subscriptions and Long-Term Contracts: 67% Transactional: 33% Financial...
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...Jersey ta b l e s e ct ion o f co n t e n t s 1 2 client acceptance . . . . . . . . . . . . . . . . . . . . . . . . . . . S o l u tionS inc lu de d in t h iS Section 1.1 Ocean Manufacturing, Inc. 3 The New Client Acceptance Decision s e ct ion Understanding the Client’s Business and assessing risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 S o l u tionS inc lu de d in t h iS Section 2.1 Your1040Return.com Evaluating eBusiness Revenue Recognition, Information Privacy, and Electronic Evidence Issues . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.2 2.3 2.4 Dell Computer Corporation Evaluation of Client Business Risk Flash Technologies, Inc. Asher Farms Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Risk Analysis and Resolution of Client Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Understanding of Client’s Business Environment s e ct ion 3 Professional and ethical issues . . . . . . . . . . . . . . . . . . . . . . . 59 S o l u tio nS inc lu de d in t h iS Section 3.1 3.2 3.3 3.4 3.5 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should He Pocket the Cash? Recognizing It’s a Fraud and Evaluating What to Do . . . . . . . . . . . . . . . . 63 The Anonymous Caller WorldCom . . . . . . . . . . . . . . . . . . . . . . . . . . ....
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...eBAY.COM A Case Report for Getting Tools Used NOTE: THIS IS ONLY A PORTION OF THE GETTING TOOLS USED RESEARCH REPORT. FOR THE FULL DOCUMENT AND OTHER INFORMATION VISIT WWW.CFAH.ORG. Getting Tools Used Table of Contents Foreword by Jessie Gruman ......................................................................................................................................... 1 Executive Summary ........................................................................................................................................................ 3 About CFAH ...................................................................................................................................................................... 7 Table of Contents ........................................................................................................................................................... 8 Introduction: 21st Century Marketplace .................................................................................................................. 9 Research Framework ................................................................................................................................................... 17 Case Studies.................................................................................................................................................................... 25 Consumer Reports: Car Buying Guide ....................................
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...Forum 2 Case Study Introduction Relationships in business are extremely important. Most successful businesses are built on this concept. Unfortunately, there are times when what is best for the business is not best for the relationship. Employees are fired, leadership is changed, and jobs are outsourced. Difficult decisions are just part of business. The relationship between the Scuppernongs grape company and Don’s store began slowly at first, and then developed into a steady exchange of business. Don, without mentioning anything to the Scuppernongs grape company owner, had his minor son sign a contract that included a guaranteed price schedule. This is when the relationship was officially damaged. Scuppernongs grape company now has a contract offer to be exclusive with a company in Connecticut. When the Scuppernongs grape company owner contacted Don, he informed him of the contract and that he intended to hold the Scuppernongs grape company to the terms detailed. Due in part to the contract being invalid as it was signed by a minor who also was not an authorized legal representative of the company, the Scuppernongs grape company should accept the contract offer from Connecticut. Minor’s capacity to contract The Scuppernongs grape company owner’s son was working part-time as a delivery driver and was minor at the time Don had him sign a contract as a representative of his father’s company. Don did this without the knowledge of the minor’s father...
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...Riordan Corporate Compliance Plan Riordan Manufacturing Riordan Manufacturing is a global plastics producer with an employee base of 550. The company has projected annual earnings at $46million and is owned by Riordan Industries. There are different segments of the company but the major customers are the automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. The company has recently undergone some strategic changes in manufacturing and marketing. Some of those recent changes are beginning to effect employee retention numbers. Situation Analysis Riordan Manufacturing has many issues and opportunities laid before them. The company must identify the proper issues in order to make the right adjustments. For the company to prosper, they must first take care of their employees. Issue Identification There are a myriad of issues that exist for Riordan Manufacturing. The company has gone through some recent structural changes because of the ever changing industry. Riordan decided to switch from an individual sales model to a team-based sales model. The issue with the above is that the individuals are used to being compensated solely based on their own performance; now there is apprehension about compensation at the team rate. Another issue is just the pay itself. Some managers are concerned that employees may take proprietary information and share it with competitors after leaving the company. Higher...
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...Internal Competencies …………………………………………………………...Page 10 IFE Matrix………………………………………………………………………...Page 12 2 History of Pfizer Pfizer Inc. is a research pharmaceutical company. Charles Pfizer started the company in Williamsburg, Brooklyn in 1849. During World War II, Pfizer became concretely established as one of the United State’s top drug companies by producing the antibiotic penicillin for soldiers out at war aboard. By the 1950's, Pfizer began to establish headquarters in Belgium, Brazil, Canada, Cuba, Mexico, and England. This gave Pfizer a platform to be able to compete globally. Expanding aboard is a powerful concept that most companies during this time did not consider. In 2000, Pfizer merged with Warner-Lambert in order to acquire full rights to Liptor. Lipitor is a popular drug used to lower cholesterol levels in the body. In 2002, Pfizer decided to participate in another merger with Pharmacia. This strategic action lead Pfizer to become the world's largest pharmaceutical devoted solely to healthcare. Of course we all know that this was not the only reason why Pfizer wanted to merge with Pharmacia. Pfizer’s underlying reason for merging with Pharmacia was to gain the rights to the drug Celebrex. Celebrex is used to treat osteoarthritis, rheumatoid arthritis, acute pain, painful menstruation and menstrual symptoms Pfizer Inc. is currently made up of three major core business segments. These segments are pharmaceutical, consumer healthcare and animal...
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