(hereinafter referred to as Excello). In this case‚ the Chief Financial Officer (CFO) considered inappropriately posting a $2.1 million transaction to boost year-end earnings. Possible Legal Issues Faced by Excello At the end of 2010‚ Excello faced the possibility of not meeting earnings estimates‚ which affects bonuses‚ stock options‚ and shareholders’ earnings (Mintz & Morris‚ 2011). Terry Reed‚ the Chief Financial Officer (CFO) of Excello contemplates recording a $1.2 million sale at the end of 2010
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of what was good for the organization. Ethical Issues: Leo Dennis Kozlowski handpicked a few trusted people and placed them in key positions. One of these individuals was Mark Swartz‚ who was promoted from director of Mergers and Acquisitions to CFO. Kozlowski also recruited Mark Belnick to become Tyco’s general counsel. The majority of the directors had been on the board for ten to twenty years‚ and they were very familiar
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Running head: CASE ANALYSIS OF THE ACCOUNTING FRAUD AT WORLDCOM Case Analysis of the Accounting Fraud at WorldCom Angela Crossley Troy University October 27‚ 2008 History The origin of WorldCom can be traced back to 1983. The CEO‚ Bernard J. Ebbers‚ of WorldCom had very interesting beginnings. He invested in Long Distance Discount Services (LLDS) with eight other investors‚ and believed that the telecommunications industry was a very good business venture. In the beginning
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Review of Accounting Ethics – Worldcom ACC557 Financial Accounting Cornelia H. Brown Strayer University Review of Accounting Ethics - Worldcom In a business world pressured to meet organizational objectives such as high revenue growth it is not alarming that conduct by decision makers may be deemed as questionable practices. These practices within the past two decades have resulted in a number of organizations finding themselves confronted with ethical dilemmas and the aftermath
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Regarding changes in senior management‚ Breon Corcoran‚ the current Betfair Chief Executive Officer (CEO)‚ is appointed as CEO and a new executive director of Paddy Power Betfair. The colleagues of Mr. Corcoran respond quite optimistically to his appointment and expect a prosperous future of the new merger under his leadership. Edward Wray‚ co-founder and chairman of Betfair‚ claims that "Breon Corcoran knows both businesses inside out. Often when you do a merger‚ it is 25 per cent know and 75 per
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Paragon a powerful presence in the fast growing business. Paragons service division accounted for less than 10% of the revenue. So to outrace Bellows&Samson‚Pragon had to acquire Monito Robotics which was a breakthrough opportunity.William Liitlefield‚CFO‚being the pessimist he is‚ argued
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urgency to claim revenue became a must. Several situations led to fines that would later be placed on the company’s executives including: Christopher Crawford [CFO‚ CPA]: Claimed revenue from a barter transaction that passed materiality by auditors. This mistake however shouldn’t have passed and was a scheme operated by the CFO who knew the materiality of the testing. Todd Katz [VP of Sales]: Creates phoney sales transactions that would soon be investigated by the SEC. Without these
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Finance and Investment Cycle I. Introduction A. Special purpose entities B. Transaction: less frequent‚ large and complex C. Focus of control activities: authorization of transactions & compete of accounting personnel D. Focus of substantive procedures: understanding of the transactions‚ verifying amounts and calculations‚ ensuring presentation and disclosures II. Inherent risks E. Lease accounting 1. The classification of operating or capitalized
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General partners are those who are responsible for the day-to-day management of activities‚ whose individual acts are binding on all the partners‚ and who are personally responsible for the partnership’s total liabilities. Limited partners are those who contribute only money and are not involved in management decisions and whose liability is limited to the amount of their investment. Joint Venture Joint Venture acts like a general partnership‚ but is clearly for a limited period or a single project
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The total amount of error accumulated to a before tax amount of $8 million ($5.8 million after tax) with $3 million before tax ($2.2 million after tax) of the error directly related to the fiscal year that ended on June 30‚ 2004. Dianna Bullock (CFO) and Joe King (CEO) discussed the issue during an executive meeting in July of 2004 and decided to ignore the problem because they perceived it as immateriality. In the same month‚ the managers signed its representation letter for its 10-K reports
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