...Fraud of ZZZ Best Company The ZZZ Best was the carpet cleaning company that was started by 15 year old Barry Minkow in 1982. He was inspired to enter into this industry by his mother when he was 12 years old. His mother was working as a telephone solicitor for a small carpet cleaning firm. Though most of the companies in carpet cleaning industry were legitimate, the nature of this business attracts many seedy characters of the malpractice. There are no barriers for any entry even no license was required. It was too easy that a 16 year old boy can start this business with his new driver’s license. The boy started his business as “rug sucker”. Minkow started his business named ZZZZ Best Carpet Cleaning Company in Reseda, San Fernando Valley, California. In the beginning stage Minkow ran his home based business out of his parent’s garage. Minkow soon realized that a small carpet cleaning business grew rapidly in next five years, but Minkow realized that it was difficult to earn from this business. To make earning better he had to face the cutthroat competition. The young boy had to face customer complaints, bad checks, and nagging vendors also demanding payment. And within very short time phrase he faced the fact of shortage of working capital. And moreover because of Minkow’s young age and the fact that ZZZZ Best was only marginally profitable business. All the local banks refused to give him loan. So, this teenager was looking for some easy ways of earning. Like check kiting...
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...review service provides a moderate amount of assurance on the financial statements, and less evidence is necessary to support this level of assurance. Whereas audit provides a high level of assurance. 2. The Limitations of Management assertion of existence: First ZZZ Best auditor George Greenspan performed audit for 12 months ended April 30, 1986. According the case: He confirmed the existence of ZZZ Best major insurance contracts by contacting Tom Padgett. He not only confirmed their existence but also obtained and reviewed copies of all key documents regarding those jobs. However, Greenspan did not inspect any of the insurance restorations. As I understood from the case, If auditor satisfied that these jobs exist by different sources (existence according the paper documents) he is not required to conduct personal on-site inspection. Or if physical observation is not relevant or too costly auditors obtain the next best evidence available. This is the one of limitations of management assertion of existence The next auditor of ZZZ Best Larry Grey (Ernst and Whinney) besides getting evidence in paperwork, he conducted on-site inspection of one of the biggest restoration site contracts of ZZZ Best. But Ernst and Whinney didn’t corroborate the evidence of existence from all different sources (most reliable eternal evidence which is independent from the Co.). They didn’t take into account that...
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...ZZZ Best, Case 1. Ernst & Whinney never issued an audit opinion on financial statements of ZZZZ Best but did issue a review report on the company’s quarterly statements for the three months ended July 31, 1986. How does a review differ from an audit, particularly in terms of the level of assurance implied by the auditor’s report? There are numerous differences between performing a review and actual audit on the financial statements, but the major one is that the review does not contemplate obtaining an understanding of internal control structure. Also, a review does not assess control risk, tests of accounting records and responses to inquiries by obtaining corroborating evidence through inspection, observation or any other audit procedure. It can point out significant matters of the financial statements but does not provide assurance of their accuracy. The issue with ZZZZ Best case is that the auditors review was not sufficient enough to review any misstatements on the financial statements. Erns & Whinney never questioned the internal control, reviewed contractual agreements or made comparison of the previous statements. If they had done any of the above, they would have revealed a glitch in the system. In addition, the review does not provide the assurance that an audit opinion would do on the financial statement. 2. SAS No.106, "Audit Evidence," identifies the principal "management assertions" that underlie a set of financial statements. The occurrence assertion...
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...2 AM on a warm summer day in 1988, I distinctly remember being worried about my 6th grade algebra test scheduled later in the day. I craved for my parents’ guidance and moral support but they were thousands of miles away living in another country. Years later, when I recounted this experience to my father, he confided to me, with tears welling up in his eyes, that not a day goes by without him feeling remorse for not having been around to guide me during my youth. While my parents showered me with material comforts and love, it still did not compensate for their physical absence. Experiences such as these motivated me to mentor a team of four at ZZZ, an organization aimed at preparing high school students for college. The students were mostly from broken homes with very little means of sustenance. My responsibility, when I joined ZZZ in summer ‘09, was to guide my team to conceive a product, create a business plan and present it during the business plan competition at the end of the school year. During the first few meetings, we discussed numerous product ideas, few practical and many impractical. Though taken by their enthusiasm, I had to help them focus on a feasible product taking into account time and logistical constraints. Doing so with teenagers took considerable patience, but eventually, given our collective craving for desserts, a great product idea - “Customizable candy wrappers” was born! We soon got to work after I gauged their strengths and assigned each of them...
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...Research Paper Number One Nathan C. Fears, Student Kaplan University Abstract The perception of the financial and the accounting field over the past decade has been very poor in the eyes of the public. Especially after many recent scandals that have more then embarrassed the industry. The overall idea behind the field of accounting is for accountants to serve the public for the greater good. Yet the public doesn’t feel that accountants can be trusted. Hence, the numerous amounts of regulations imposed by the government on the finance field. In this paper we discuss the field of finance and accounting, overall view of the public, several scandals that led to the lowly perception of the accounting profession and some of the numerous regulations imposed by the government. Are these regulations too many or too little and how do they affect the economy? Research Paper Number One The perception of the financial and the accounting field over the past decade has been very poor in the eyes of the public. Especially after the recent scandals that have more then embarrassed the industry. The overall idea behind the field of accounting is for accountants to serve the public for the greater good. Yet the public doesn’t feel that accountants can be trusted. Hence, the numerous regulations imposed by the government on the finance field. According to a recent poll done by U.S. News and World Report of the top jobs...
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...To: XXX XXXXX Managers. From: Joe Fire, Public Relationship Manager. Date: May 19, 2009 Subject: Changes in operation timings: You will be aware that there is an increase in the gas prices causing higher costs to the company as well as inflating the gas bills of the managers and employees that travel to work. This has led to a severe increase in operating costs and calls for adjustment to our operations. To counter the severe increase in gas prices, the store will now remain closed on Sundays. The store will be open on Monday through Saturday from 9 am instead of 8 am and will close at 8 pm instead of 9 pm. The managers will now be required to work four 10 hours-a-day every week. The part-time employees will be required to consolidate their work weeks into one, two or three workweeks. Currently, there will not be any store closures; however, no new stores will be opened. It is expected that the new time of store operations will reduce fuel cost for the managers. Also fewer full working days will mean you will have more time with your family and an opportunity to pursue your interests. Store Employees (e-mail) Send as: Joe Fire, Public Relationship Manager. To: XXX XXXXX Employees: Subject: Improvement in store operations timings. You have exciting news. There are new employee friendly operational timings that will make you happy. The stores will not remain closed on Sundays so no employee will be required to work on Sundays. That apart full time employees will have their...
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...Qi Geng ACC 522 Professor Tatum 04/19/2014 Lessons Learned From Litigation Introduction It’s not just clients who make mistakes, auditors also make fatal errors that directly or indirectly “contributes’ to the “death” of their client companies. Internal audit failures, most of the time, are due to reasons that easily could have been prevented during audit planning. These reasons could be not setting aside enough time to adequately plan the audit, not involving the client or failing to put together appropriate team members, etc. How can auditors to more effectively detect financial statement fraud? One of the best ways is to “profit” from the mistakes of others. The following is a list of lessons to be learned from the cases that we examined in class and AICPA codes that are applied to each case. Independence (ET section 101) Rule 101–Independence. A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council. The impairment of independence can happen due to many reasons such as the close financial relationship between a covered member and a client, a covered member’s close relative’s position in the client’s company, etc. In the case of Leslie Fay, BDO Seidman’s independence was impaired, the auditing firm of Leslie Fay since mid-1970s, because the on-going litigation brought up by Leslie Fay’s stockholders. This is supported by the paragraph 8 of ET section 101, which...
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...Application of Game Theory In Biman Bangladesh Airlines Application of Game Theory In Biman Bangladesh Airlines Submitted to, XXX Lecturer Department of YYY University of ZZZ Submitted by, Group “Oracles” 17th Batch B section Date of Submission: 19th March, 2012 Dated: 19th April, 201 XXX Lecturer Department of YYY University of ZZZ Subject: Solicitation for acceptance of the Report on “Application of Game theory in Biman Bangladesh Airlines”. Dear Sir, We are very much pleased to submit the report on “Application of Game theory in Biman Bangladesh Airlines” which provides us the opportunity of practicing our theoretical knowledge. Though it is our first such type of report but all the works presented here is done with utmost sincerely and honesty. We have tried our best to make this report holistic and informative enough. Besides this, there may be shortcomings. We would be grateful if you consider those from excusable point. Thanking you Sincerely yours The group “Oracles” Batch-17th Section: B ACKNOWLEDGEMENT For the completion of this we cannot deserve all praise. First of all we like to thank the Almighty Allah who gives us the opportunity to prepare this project successfully. We do believe that it is his blessings on us that we have completed this report in spite of some initial obstacles. We are very thankful to our course instructor XXX. Under his caring guidance we found the completion...
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...The Prevention of Food Adulteration Act & Rules (as on 1.10.2004) CONTENTS PRELIMINARY SECTION 1. 2. 2-A Short title, extent and commencement Definitions Rule of construction PAGE 1 1 10 MISCELLANEOUS SECTION PAGE 14. Manufacturers, distributors and dealers to give warranty 35 14-A Vendor to disclose the name, etc, of the person from whom the article of food was purchased 36 15. Notification of food poisoning 36 16. Penalties 36 16-A Power of Court to try cases summarily 39 17. Offences by companies 43 18. Forfeiture of property 45 19. Defences which may or may not be allowed in prosecutions under this Act 46 20. Cognizance and trial of offences 47 20-A Power of Court to implead manufacturer, etc. 53 20-AA Application of the Probation of Offenders Act, 1958 and Section 360 of the Code of Criminal Procedure 1973. 54 21. Magistrates power to impose enhanced penalties 54 22. Protection of action taken in good faith 54 22-A Power of Central Government to give directions 54 23. Power of Central Government to make rules 55 24. Power of the State Government to make rules 58 25. Repeal and saving 59 THE PREVENTION OF FOOD ADULTERATION RULES, 1955 Part I PRELIMINARY RULE PAGE 1. Short title, extent and commencement 60 2. Definitions 60 vi CENTRAL COMMITTEE FOR FOOD STANDARDS AND CENTRAL FOOD LABORATORY 3. 3-A 4. 5. 6. 7. The Cental Committee for Food Standards Appointement of Secretary and other staff Central Food Laboratory GENERAL PROVISIONS AS TO FOOD Prohibition of import...
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...creative analyses of the strategic possibilities of eCommerce and Internet technology. eStrategy Partners provides both the strategic expertise of traditional management consulting firms and the technical planning capability and accountability of Internet professional service companies. "eStrategy" -- the identification, design and implementation of business solutions for eCommerce. Copyright & Disclaimer This business plan is presented here to benefit and promote the services of eStrategy Partners, LLC. The information and ideas herein are the confidential, proprietary, sole, and exclusive property of eStrategy Partners, LLC This plan should not be construed as an offer to sell securities in Pipedream.com, Inc. 2 Non-Disclosure Agreement You are being furnished with confidential information that has been prepared by eStrategy Partners, LLC (The "Company"), and you may be furnished with additional information by the Company or by its representatives or agents in connection with evaluating a possible transaction with the Company. By your acceptance and as a condition hereof, you agree to treat all information concerning the Company which is furnished to you by or on behalf of the Company, whether furnished before or after the date of this letter and regardless of the manner in which it is furnished, together with analyses, studies or other documents or records prepared by you or any of your employees or agents (collectively, "Representatives") to the extent ...
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...FRAUD BASICS WHAT IS FRAUD? Fraud, sometimes referred to as the fraudulent act, is an intentional deception, whether by omission or commission, that causes its victim to suffer an economic loss and/or the perpetrator to realize a gain. A simple working definition of fraud is theft by deception. Legal Elements of Fraud Under common law, fraud includes four essential elements: 1. A material false statement 2. Knowledge that the statement was false when it was spoken 3. Reliance on the false statement by the victim 4. Damages resulting from the victim’s reliance on the false statement In the broadest sense, fraud can encompass any crime for gain that uses deception as its principal technique. This deception is implemented through fraud schemes: specific methodologies used to commit and conceal the fraudulent act. There are three ways to relieve a victim of money illegally: force, trickery, or larceny. Those offenses that employ trickery are frauds. The legal definition of fraud is the same whether the offense is criminal or civil; the difference is that criminal cases must meet a higher burden of proof. For example, let’s assume an employee who worked in the warehouse of a computer manufacturer stole valuable computer chips when no one was looking and resold them to a competitor. This conduct is certainly illegal, but what law has the employee broken? Has he committed fraud? The answer, of course, is that it depends. Let us briefly review the legal ramifications...
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...But here’s why you need them. 54 Newswriting style Every newsroom adapts its own rules when it comes to punctuation, capitalization, etc. 56 Making deadline When you’re a reporter, you live by the clock. How well will you handle the pressure? 58 66 newswriting tips A collection of rules, guidelines and helpful advice to make your stories more professional. PLUS: 60 The Press Room 62 Test yourself 34 NEWSWRITING BASICS NEWSWRITING BASICS 35 Just the facts When you write a story, you must try to be objective. Truthful. Fair. You can’t just pull material from your memory, or quote your friends, or make pronouncements about the way things ought to be. You must be factual — which means basing your stories on the best facts you can...
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...Travel AgencyExecutive Summary The tourism industry has undergone rapid growth of unsurpassed nature over the last several decades. This has mainly been due to the advent of a 'borderless' world and increased information dissemination about the majestic sceneries throughout the world, with the southern African region being no exception. We are on the brink of penetrating a lucrative market in a rapidly growing industry. The current trend towards an increase in the number of tourists entering the country presents an opportunity for Sephats Tours to penetrate the market. An opportunity for Sephats Tours' success exists because the national tourism industry is growing at a rapid pace annually. Sephats Tours is poised to take advantage of this growth and moderate competition in the city travel portion of the industry, with a dedicated and experienced staff, excellent networking, and effective management and marketing. Sephats Tours intends to provide travel and adventure packages to tourists primarily in the Southern region, but also the whole of Botswana. Services and products provided by Sephats will initially include pre-arranged tours, custom packages according to clients specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. Sephats Tours seeks to differentiate itself as the premier adventure mobile operator in the greater Gaborone area. Our services will be positioned very carefully: they will be of...
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...INTRODUCTION HOW TO REALLY GET A JOB IN BANKING: The single most important thing you can do is to talk to as many people as you can. Talk to bankers and second years at SOM, learn about their experiences and views, and above all think for yourself. Getting a job in investment banking should involve two efforts on your part: (1) Learning your own needs - what is it you want in a job? (2) Learning what an investment bank is and does - does this type of job meets your needs? As a final warning, there is an allure to investment banking, namely that it is a high powered, fast-paced, exciting, dynamic career that can make you rich. This can be true, but it is also just a job - particularly as a first-year associate when it may not be as glamorous as you thought it would be. QUALITIES THAT INVESTMENT BANKS LOOK FOR It is important to see yourself as a portfolio of skills and qualities conducting an internet job search as well as any other. There are a number of skills and qualities that banks look for, and a successful candidate needs to put together several, but certainly not all of them. Additionally, it is probably a good idea to have some balance in your portfolio. Some qualities that banks look for on a resume or in the interview and some suggested ways to demonstrate them (these are just a few, and some banks will emphasize some more than others): Show a strong interest in Finance: Be able to convey to an interviewer/contact that you understand what...
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...LSCM Assignment-2 On Case Studies Comparison Sudhakar Varada Roll No: 133307 SOM Assignment-3 On News Articles Summary Sudhakar Varada Roll No: 133307 SOM Assignment-2 On Service Company Sudhakar Varada Roll No: 133307 Hard Rock Café The first Hard Rock Cafe opened its doors to the public on June 14, 1971, in London, England. Founded by Isaac Tigrett and Peter Morton, two enterprising and music-loving Americans, beginning with a guitar, it is only a joke among the friends at first, later on founder of the band -Cream and Derek & the Dominoes sent a guitar of his here, and has booked a desk for a longtime. From then on, the other guitars were sent here continually, have not stopped at all times. Hard Rock Cafe was an instant classic, attracting droves of customers with its first-rate, but moderately priced casual American fare, warm service and ever-present rock 'n' roll music and sensibility. At that time it has been doing things its own way. It was initially decorated with an eye toward eclectic American. What started as an American dinner in the heart of London has blossomed into a way of life. Hard Rock In 2007, Hard Rock was sold to the Seminole Tribe of Florida, and is headquartered in Orlando, Florida. Currently, there are 191 Hard Rock locations in 59 countries including 145 cafes, 21 hotels and 10 casinos. Mission: “To spread the spirit of rock ‘n’ roll by creating authentic experiences that rock.” To spread the spirit of Rock 'n Roll...
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