auditing
Qiong Wu
Instructor James Dutra
ACC 412
March 26, 2014
Case 3.1 Dodgers Trolley Summary The Dodgers Trolley case is a simple problem related the internal control in auditing. Dodgers Trolley was original funded in New York, but Yankees performed much better. After nearly seven decades of mostly frustration on and off the baseball field, the Dodgers shocked the sports world by moving to Los Angeles in 1958, because Walter O'Malley saw the opportunity to introduce baseball to the increasing population on the west coast, and the possibility to make his team profitable. Since then the Dodgers have been leaders in profit and attendance. They were able to maintain a profit margin approaching 25 percent in many years. In 1997 the son of Walter O'Malley, Peter O'Malley sold the franchise to Rupert Murdoch for $350 Million.
In a pre-sale interview Peter O'Malley stated the success of the Dodgers attributed to Edward Campos, a longtime accountant he relied on. By 1986, after almost 20 years with the club he became the operations payroll chief. After that Campos designed and implemented a new payroll system, a system that only he fully understood, and he was so dedicated to his job that he would even come back from vacations did the payroll.
Over the years Campos embezzled several hundred thousand dollars from the club. He added fictitious employees to multiple departments. Additionally he would inflate the hours worked by employees and split the overpayment with them. His scheme was uncovered when doing the payroll Dodger’s Controller noticed several employees including ushers, security guards and ticket sellers were receiving large payments. Employees earning $7.00 per hour were receiving weekly paychecks of $2,000. Following a criminal investigation and the filing of charges against Campos and his cohorts, all the individuals involved in the fraud confessed.
Finally Campos got 8 years in prison and required restitution of $132,000 to the
Instructor James Dutra
ACC 412
March 26, 2014
Case 3.1 Dodgers Trolley Summary The Dodgers Trolley case is a simple problem related the internal control in auditing. Dodgers Trolley was original funded in New York, but Yankees performed much better. After nearly seven decades of mostly frustration on and off the baseball field, the Dodgers shocked the sports world by moving to Los Angeles in 1958, because Walter O'Malley saw the opportunity to introduce baseball to the increasing population on the west coast, and the possibility to make his team profitable. Since then the Dodgers have been leaders in profit and attendance. They were able to maintain a profit margin approaching 25 percent in many years. In 1997 the son of Walter O'Malley, Peter O'Malley sold the franchise to Rupert Murdoch for $350 Million.
In a pre-sale interview Peter O'Malley stated the success of the Dodgers attributed to Edward Campos, a longtime accountant he relied on. By 1986, after almost 20 years with the club he became the operations payroll chief. After that Campos designed and implemented a new payroll system, a system that only he fully understood, and he was so dedicated to his job that he would even come back from vacations did the payroll.
Over the years Campos embezzled several hundred thousand dollars from the club. He added fictitious employees to multiple departments. Additionally he would inflate the hours worked by employees and split the overpayment with them. His scheme was uncovered when doing the payroll Dodger’s Controller noticed several employees including ushers, security guards and ticket sellers were receiving large payments. Employees earning $7.00 per hour were receiving weekly paychecks of $2,000. Following a criminal investigation and the filing of charges against Campos and his cohorts, all the individuals involved in the fraud confessed.
Finally Campos got 8 years in prison and required restitution of $132,000 to the