AVOIDING INVESTMENTS IN FRAUDULENT COMPANIES: THE WORLDCOM FRAUD Introduction The purpose of this report is to investigate and discuss the accounting fraud that occurred at WorldCom in order to recommend improved strategies to Berkshire Hathaway’s management for avoiding investments in companies with fraudulent financials. Accounting fraud is a crime committed by high level employees at an organization to manipulate the organization’s financial statements and intentionally disguise company
Free Internal audit Audit Internal control
all the hardware‚ software‚ and user training required to establish and integrate the new system into the organization. A type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program‚ and companies can place bids for the project’s completion. The Request For Proposal (RFP) outlines the bidding process and contract terms‚ and provides guidance on how the bid should be formatted and presented. A RFP is typically open to a wide
Premium Procurement Request for proposal Proposal
follow. Berkshire Hathaway – Tuesday‚ September 7‚ 2004 Background: The case captures the dynamics of auditor-client relations. The SEC has recently been critical of the audit profession‚ arguing that CPA firms are too ready to agree with clients’ questionable accounting decisions. This case demonstrates what can happen to an audit firm when it stands up to an audit client over an audit issue. Actors: Warren Buffett‚ Peat Marwick partner in 1983‚ KPMG partner in 1984 (assume a new partner was involved)
Premium Audit Inventory turnover Inventory
Warren E. Buffett‚ 2005 Case Questions: 1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically‚ what does the $2.17-billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Based on the multiples for comparable regulated utilities‚ what is the range of possible values for PacifiCorp? What questions might you have about this range? Assess the bid for
Premium Stock market Berkshire Hathaway Warren Buffett
Two Successful Business People Who Inspire Me Success is something that we all aspire to. We cannot feel genuinely happy for long if we felt like a failure within. The most encouraging reality about success is that it is attainable to all irrespective of who we are what we are or where we are. Success also has a different meaning for each one of us. Success being a personal realization should logically be achievable by all‚ but we know that this is not really so. Most of us are unable to accomplish
Free Bill Gates Bill & Melinda Gates Foundation Warren Buffett
Introduction Merger and acquisition both are strategic decision and an aspect of corporate strategy. One plus one makes three: this equation is the special alchemy of a merger or an acquisition. The key principle behind buying a company is to create shareholder value over and above that of the sum of the two companies. Two companies together are more valuable than two separate companies - at least‚ that’s the reasoning behind merger and acquisition. Most histories of merger and acquisition begin
Premium Mergers and acquisitions
environment of the organization (Raghavan‚ 2014). In 2010‚ Dominic Barton‚ Managing Director of McKinsey‚ an 87-year-old global consulting firm with annual revenues in excess of $7 billion‚ faced a problem never before encountered by the firm. Two senior partners‚ Rajat Gupta and Jain Anil Kumar‚ were found guilty of securities fraud when they contacted Raj Rajaratnam of the Galleon Hedge Fund and informed him in two separate instances of impending high value investment transactions before they were publically
Premium Risk Goldman Sachs Adam Smith
(Finance) Prepaid by: Do Hoang Anh Tuan - Peter Registration No: ITP F05- 243 Table of Contents Introduction This assignment will compare and contrast the internal environment of Berkshire Hathaway and Viet Tien garment company. Various aspects such as: structure‚ culture‚ behavior at work and leadership style and others of two companies will be analyzed‚ compared and contrasted. From the study‚ reader can understand the important
Premium Berkshire Hathaway Warren Buffett
Capital Valuation Paper Capital Valuation Paper Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha‚ Nebraska‚ United States‚ that oversees and manages a number of subsidiary companies. Berkshire Hathaway Inc. has a goal to increase its ownership of first-class businesses. Berkshire Hathaway Inc. must determine if the project is worthwhile. One way an organization can determine its worth
Premium Cash flow Net present value Berkshire Hathaway
Warren Buffet Berkshire Hathaway Inc. is a famous company which also involves in many different business segments. It was originally operated as a cotton manufacturing company. In 1965‚ Warren Buffet declared to take over it and he became the chairman and CEO of Berkshire Hathaway. Since then‚ this company started to be well known by the world. Market value implication On May 24‚ 2005‚ Buffet announced that MidAmerican Energy Holding Company‚ a subsidiary of Berkshire Hathaway would acquire
Premium Berkshire Hathaway Warren Buffett