Next audit company which audited Minkow’s company was Ernst and Whinney. From Greenspan confession‚ he already communicate with Ernst and Whinney as predecessor auditor who audited ZZZ Best but this statement was rejected by Ernst and Whinney. Ernst and Whinney signed an enagement letter as a proof that Ernst and Whinney had right to audit ZZZ Best Company Inc. In that contratc‚ ZZZ Best Company Inc.‚ asked four services to Ernst and Whinney that the audit firm intended to provide ZZZ Best
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bell-bottom trousers and oversized hip-hop clothes. As losses piled up and suppliers threatened to bolt‚ the company turned to a newly hired law firm to find turnaround experts who could save it. The lawyers’ recommendation: Bring in consultants from Ernst & Young. To worried creditors‚ the solution for Merry-Go-Round was obvious: Close hundreds of money-losing stores as fast as possible‚ to stop hemorrhaging cash. Time is of the essence when a retailer gets in trouble‚ and one that is in Chapter 11
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CASE 2.6 CBI HOLDING COMPANY‚ INC. Synopsis Ernst Young audited the pharmaceutical wholesaler CBI Holding Company‚ Inc.‚ in the early 1990s. In 1991‚ Robert Castello‚ CBIs owner and chief executive‚ sold a 48 stake in his company to TCW‚ an investment firm. The purchase agreement between Castello and TCW identified certain control-triggering events. If one such event occurred‚ TCW had the right to take control of CBI. In CBIs fiscal 1992 and 1993‚ Castello
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CASE 1.10 United States SUrgical Corporation 1980 an ‘1981 ftnicia1 sheets and iicbme statements fOr the j 1 Thas and subsequent quOtatiOnS unless indicated othrwise‚ were taken from Secunties and Exchange AccountiAg and AuthdrzEifocerhe‚# Release No 1O9A‚ August 1986. 122 H SECTION ONE COMPREHENSIVE CASES IIBIT 1 TED STATES :GICAL PORAT1ON’S ‘9—1981 kNCIAL TEMENTS Current Assets: Cash Receivables (net) Inventories: Finished Goods Work in Process Raw Materials Other Current
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subsidiaries. Ernst and Young became CBI’s independent auditors and performed audits for CBI’s financial statements from 1990 through 1993. Ernst and Young failed to investigate the alleged advances and conform to clients facts which may include investigating credit limit and analyzing vendor’s payable accounts. Instead the auditors record in their work papers the client’s feeble explanation for the advances. After investigations from a former CBI accountant and CBI controller‚ Ernst and Young have
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inspiration and lover of three Surrealist artists. Max Ernst painted this picture of her forehead unfolding as people of the Surrealist movement would go and explore the unconscious mind. (The Metropolitan Museum of Art) In this painting Max Ernst really took into consideration Sigmund Freud’s dream theories to investigate his deep soul in order to discover the groundwork of his own creativity (Max Ernst Biography‚ Art‚ and Analysis of Works). Max Ernst was a soldier during WWI which traumatized him and
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accounting firms take to reduce the risk that personal relationships between client personnel and members of an audit engagement team will not adversely affect the quality of an audit? 5. Was the 1988 ‘‘retention agreement’’ that Ernst & Young made with JWP appropriate? 6. Why did Ernst & Young agree to pay a large settlement to JWP’s stockholders but chose to contest the lawsuit filed against it by the insurance companies? Facts This accounting fraud involves a company called Jamaica Water Properties Inc
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Knowledge management is the process of capturing‚ developing‚ distributing‚ sharing‚ and effectively using organizational knowledge. It refers to a multi-disciplinary approach to achieving organizational objectives by making the best use of knowledge (Cortada‚ 2000). Customer relationship management refers to the strategies that companies use to manage and analyze customer interactions‚ purchase history‚ personal interest‚ buying preference and data throughout the customer lifecycle‚ with the goal
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ZZZZ Best company is one of the biggest examples of Accounting Frauds. The founder of ZZZZ best was Barry Minkow. He was a very smart young entrepreneur when he started the company. He was involved in credit card forgeries prior to starting his own carpet cleaning business “ZZZZ Best Company”. Minkow began his business with small carpet cleaning jobs and he became a multimillionaire in a very short period of time. Minkow met a person named Tom Padgett at Los Angeles Health club. This was the beginning
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Board) has penalized Ernst & Young $2 million for violating audit firm PCAOB’s rules. Ernst & Young (audit firm) failed to properly evaluate how Medicis Pharmaceutical Corp. (company) was calculating its reserve for sales returns. Financial Restatement Summary Medicis Pharmaceutical Corp. had to restate more than three years worth of financial statements in 2008 (Censuring E&Y‚ PCAOB Hits Firm’s Lack of Skepticism). According to an inspection by PCAOB of Ernst & Young (audit firm)
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