called “adjusting journal entries” spread out on his desk. He had been appointed chief financial officer (CFO) of Electro Scientific Industries‚ Inc. (ESI)‚ a multi-million dollar equipment manufacturer‚ just a few weeks earlier. Okumoto was in the midst of closing the company’s books for the third quarter of fiscal year 2003‚ which ended February 28. An experienced executive who had served as CFO for several other technology firms‚ Okumoto was familiar with the task‚ which normally would be routine
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use of unacceptable accounting practices that resulted in the overstatement of Tyco’s operating income by as much as one billion dollars (U.S. Securities and Exchange Commission‚ 2010). As a result‚ the Chief Executive Officer (CEO)‚ Kozlowski‚ the Chief Finance Officer (CFO)‚ Swartz‚
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Main players: Founder/CEO/Chairman Dean L. Buntrock and other top executives; Arthur Andersen Company (auditors) How they did it: The company allegedly falsely increased the depreciation time length for their property‚ plant and equipment on the balance sheets. How they got caught: A new CEO and management team went through the books. Penalties: Settled a shareholder class-action suit for $457 million. SEC fined ArthurAndersen $7 million. Fun fact: After the scandal‚ new CEO A. Maurice Meyers set
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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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Sokol served as president of Ogden Projects‚ Inc.‚ an environmental services company. Sokol was motivated on becoming the company’s chief executive officer (CEO) but the bosses son stood in his way. Company insiders believed that the chairman of the parent company Ogden Corporation had already decided to appoint his son as the next CEO of Ogden Projects. Sokol in this year resigned and left back home to Omaha‚ Nebraska. In 1991‚ Sokol quickly landed a job with a large Omaha construction and
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stores‚ employing 450‚000 people‚ and servicing 40 million customers every week. In 1976‚ the then CEO initiated an international expansion programme; and in the 1990s‚ Ahold reinforced its expansion when it decided to do it by means of acquisitions as the engine for growth. The company spent €19 billion in buying 50 companies in four continents when Cees Van der Hoeven‚ former CFO‚ became CEO in 1993. Cees Van der Hoeven promised 15% annual earnings per share growth‚ and had ambitions to make
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A possible strategy is auditing the company without much communication between the auditing client and the CEO or other top officers of the company. The responsibilities of a CFO and an audit partner are similar and different. The CFO is a highly ranked officer of a company who oversees the spending habits of a company and all of its financial reports‚ activities‚ and situations. The CFO makes sure that the assets spent are spent wisely and should be spent for the right reasons. They want to be
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Copyright 2013 Jack Brennahan had his dream job. He had always wanted to head a manufacturing company and five years earlier he received that opportunity at Hollate when he was promoted from the CFO position. He enjoyed the work‚ the exciting environment he had helped create‚ and the people around him. As CEO‚ however‚ Brennahan understood that the buck stopped with him. He took his responsibilities seriously both in running a successful business and ensuring that the business met all regulatory requirements
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funds. Both the CEO and CFO of AIG were replaced amidst the scandal. This closure ended a 5-year period‚ beginning in 2001‚ which tarnished the 80-year old institution’s reputation that had become the world’s largest reinsurers‚ and included Buffet’s Berkshire Hathaway as an owner. Several of fraud’s culprits were convicted of Conspiracy‚ Securities Fraud‚ False Statements to the SEC‚ and Mail Fraud. Each offender was handed various degrees of penalties‚ including jail sentences. AIG’s CEO Hank Greenberg
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this is not needed for the discussion. Please discuss the following point: Cynthia Cooper (not shown in the clip) and her colleagues (for example‚ gentleman talking about the fraud) worried about their revelations bringing down the company. Her boss‚ CFO Scott Sullivan‚ asked her to delay reporting her findings for one quarter. She and her team did not know for certain whether this additional time period might have given Sullivan time to "save the company" from bankruptcy. Assume that you were a member
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