ACC 504 Case Study 2 DeVry Keller School of Graduate Management Publicly Traded Companies Internal Control Requirements Becoming a publically traded company is a big decision. LBJ would have to weigh the cost versus the benefit. Investors want accurate records of the company’s earnings and finances. There are certain rules that a publically traded company must adhere to in order to be in compliance with the Sabarnes Oxley Act or (SOX). For smaller companies with less than 125,000,000 in revenue
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was a fraud. Simon Marketing, which ran the game on behalf of McDonald’s was responsible for the fraud. An investigation was initiated pursuant to a confidential tip. The investigation was led by the Federal Bureau of Investigation and dubbed Operation “Final Answer”. During the investigation to uncover the fraud, the FBI used several different forms of surveillance. In this paper I will describe how the actual fraud was committed and subsequent aftermath of the investigation. Case Study The
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Internal Controls on an Accounting Information System Discussion of Internal Controls that are placed in an Accounting information System In accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the organization. These controls come in the form of internal and external controls for the system. The internal controls are the checks that are placed in the system my
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CASE STUDY 1: FLAT CARGO BERHAD: AN AUDITOR’S CONUNDRUM A. INTRODUCTION OF THE CASE There are many puzzling issues that could occur in the process of auditing a listed company. These issues could be created either intentionally or the other way around. Therefore, an objective analysis is needed to clear the puzzles especially if the auditors wish to curb fraud cases among their clients. In the case of Flat Cargo Berhad (FCB), the auditor has found some inconsistencies in
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Chapter 8 – Register Disbursement Schemes 1. Register disbursement schemes are different from skimming and larceny at the register in that they: a. Are on-book schemes, where as skimming and larceny are off-book schemes b. Require the use of an accomplice c. Leave a record of the removal of money on the register tape d. All of the above 2. Which of the following is a type of register disbursement scheme? e. Fictitious refunds f. Overstated refunds
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Chapter 7 Billing Schemes Case Study Frequent Flier’s Fraud Crashes 1. Citation: Frequent Flier’s Fraud Crashes 2. Broad Issues: Expense reimbursement schemes, as the name occur when employees make a false claims for reimbursement of fictitious or inflated business expenses. 3. Identify individuals involved & their positions in this matter: Marcus Lane: 35 years old Ph.D. Traveled all over his North and South America for his job as a geologist for the privately held firm
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ENRON: The Idiocy and the Irony Introduction Red flags were blinding as Enron learned about possible corruption with Enron Oil Trading in Valhalla, New York. After the merger between HNG and InterNorth, the Valhalla office, originally established by InterNorth seemed all but forgotten until quarterly and annual reports were due. Supervisors Tom Harding and Steve Sulentic were rarely on-site, preferring the comfort of offices in Houston. Louis Borget who established and operated the trading
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The Fraud Triangle Abstract In 2002 SAS No. 99, Consideration of Fraud in a Financial Statement Audit describes the difference between material misstatements due to errors and intentional fraud and defines two types of intentional fraud: fraudulent financial reporting and misappropriation of assets. SAS No. 99 also introduced D. R. Cressey’s theory of the fraud triangle which is so named because it consists of three conditions that are generally present when fraud occurs: incentive/pressure
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of FCB. There are two parties which Mr Chuah has to report, they are his superior, Mr Keong Chee Wah and FCB Audit Committee. However, Mr Chuah concerns that FCB might have a fraud due to the past experience such as Media Com and Blue Vital. 2.0 The Root Cause of the Problems As per our discussion about this case study, we managed to find out several root cause of the problems. 2.1 Rising of Oil Price The first root cause is the rising in oil price in the year 2005. In the year 2005,
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also enacted in response to several major corporate and accounting scandals; two of the most infamous cases are Enron and WorldCom. This research paper will focus on the analysis of four issues and discuss how the Sarbanes-Oxley Act affected the following subjects: A. 1. Audit committees of public company board of directors responsibilities since SOX 2. Sarbanes-Oxley section 404 on internal control 3. The accuracy of public company financial statements and the cost of capital for public
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