WorldCom Case Study The problems with WorldCom are the lack of internal control, disordered corporate culture, management failure and the fraud accounting practices. In this case, the EBITDA has been largely exaggerated. A $3.8 billion EBITDA overstatement became WorldCom’s accounting shame. For companies, EBITDA is a way to measure the results of operations excluding the effect of interest, corporate income taxes, depreciation and amortization of long-term assets. It provides a way to compare
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Kudler’s Audit Processes Kudler Fine Food has expanded business and updated their computer systems to meet demands. As IT information is adopted within the organization, automation control processes has become more virtualized. To ensure that Kudler’s computerize systems function properly an audit must be performed on an annual basis. Management at Kudler Fine Foods wants to see the proposed audit schedules for all systems. Management wants to know the types of audit and how they will be conducted
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Legality and Ethicality of Corporate Governance Nicolle Pack ETH376 / University of Pheonix Abstract The publicly traded company, United Thermostatic Controls, is currently in the middle of an internal audit. The different divisions of the company are regionalized according to their area. The southern division has had struggled with decreasing sales and is having a hard time reaching the target set for their sales. The company pushes the different divisions to be aggressive with increasing revenue
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-Who's in charge of internal control --> management (SOX) -Management has to sign off to show internal control is working -Everything over $10,000 needs a signature (stamps) ACFE (association of certified fraud examiners --> results from misconduct of employees, managers, and executives) definition of occupational fraud - "use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing org's resources or assets." Fraud - A generic term
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re-hiring. Question 2: I don’t believe that the anti-harassment policy and complaint procedure qualify for internal controls, as they are just procedures and guidelines for preventing harassment and racial discrimination within the company, but they don’t involve the members of the organization and do not constitute of a process, but merely of guidelines. COSO defines internal control as “a process, effected by an entity’s board of directors, management and other personnel. This process is designed
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an unexpected staff resignation has resulted in your working directly with the engagement's in-charge senior on inventory. This has been a learning experience for you, because you have helped perform various tests of controls which may be summarized as indicating that internal control over inventory (including the perpetual records) seems strong. It is your impression that those tests resulted in a decrease in substantive procedures, thereby allowing a particularly efficient audit. At the beginning
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Rationale The purpose of my presentation is to inform interested individuals about accounting fraud in small business and narrowing the topic to two main factors that allow the fraud to take place. The presentation will be specifically informational in nature. Once I have finished my presentation, the audience will have a clear understanding of my central idea, which is why limited staff and family trust are reasons that small businesses are victims of accounting fraud. The ideal audience for
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Approaches to Corporate Governance 11 3. The Board of Directors 19 4. Board committees 37 5. Corporate Governance and Corporate Social Responsibility 49 6. Corporate governance – control systems 57 7. Auditors and Internal Controls 61 8. Management Information Systems 65 9. The Risk Management Process 67 10. Controlling Risk 79 11. Ethics and Social Responsibility 89 12. Deontology and Teleology 95
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honestly describing their products online. b. Acceptable Audit Risk is Low. The reason we assign low acceptable audit risk to this account is due to the risk that may or may not be contributed through the deception of the inventory. Due to risky internal controls suggested by the warehouse manager’s response, we have reasonable belief that the inventory account and the external users may be affected by this. 3. None, *contributes to 11. 4. None 5. a. Likelihood of financial difficulties: As
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CONTENTS INTRODUCTION 2 ISSUES 3 QUESTION and ANSWER 4 RECOMMENDATION 8 CONCLUSION 10 BIBLIOGRAPHY 11 INTRODUCTION Biovail Corporation was one of the Canada’s largest pharmaceutical publicly traded companies which expert in the development and large scale of manufacturing of pharmaceutical products. Biovail Company engaged activities on enhance formulate of the existing drugs, clinical testing, manufacture and commercial pharmaceutical products and utilized advanced drug delivery
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