Fred Stern & Company‚ Inc. (Ultramares Corporation v. Touche et al.) Fred Stern & Company‚ Inc. was a rubber importer based out of New York City during the 1920s. This capital-intensive business was in high demand for numerous industries at the time. As such‚ Fred Stern & Co. relied heavily on lenders to finance its daily operations. In 1924‚ Fred Stern & Co. approached a finance company named Ultramares Corporation for a loan of $100‚000. Before accepting the terms‚ Ultramares Corp. requested
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investors and creditors. It would benefit them greatly because the audit work should be done with better care therefore they can use the statements with more trust. I feel that the judge should have authority to decide who auditors are liable to. In this case is clear that Touche was negligent and they should have liability to all foreseen third parties. 2) In section 11 of the securities act of 1933 the auditors have the burden of proof and in the securities exchange act of 1934 section 18 the plaintiffs
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to police the securities market aided financial frauds of all types. In this case‚ Fred Stern & Company‚ Inc.‚ a rubber importer‚ due to its business nature that required large amounts of working capital‚ in 1924‚ Stern requested a loan from Ultramares Corporation. Ultramares in order to approve the load to Stern‚ required the audited balance sheet of 1923. Stern’s independent auditor was Touche‚ Niven & Company. Stern provided the balance sheet and by the end of 1924‚ it managed to derive loans
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Week Five Case Studies Team D ACC 492 January 15‚ 2007 CASE 8.1 FRED STERN & COMPANY‚ INC. 1. Observers of the accounting profession suggest that many courts attempt to ¡§socialize¡¨ investment losses by extending auditors¡¦ liability to third-party financial statement users. Discuss the benefits and costs of such a policy to public accounting firms‚ audit clients‚ and third-party financial statement users‚ such as investors and creditors. In your view‚ should the courts have the authority
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public accounting firm was hired by Fred Stern & Co. to audit its record and to prepare and certify a balance sheet exhibiting Fred Stern financial health. Touche was aware that this balance sheet would be shown by Fred Stern to shareholders and banks for financial dealing. Touch certified greater assets than liabilities to be in excess of $1million of which in fact the business was actually insolvent and the statement prepared by Fred Stern was false. Fred Stern said nothing to Touche about the specific
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OMGT 1039 Production Management Assignment 1 (20 %) Quality Control Problem and QFD Due on Friday 2 Nov 2012 10:00pm Word Limit: 1500-1800 words For Assignment 1 there are two case studies. Each case worth 10 marks. Case 1 The Fred and Barney Cookie Co.[1] The Fred and Barney Cookie Co. has collected the following data over the past few days: they have a process that bakes and packages a targeted 11-gram package of cookies. They take a sample of fifteen packages every 2 hours and have
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Case Study IV – How to Motivate Fred Maiorino? MGT585 Texas A & M University - Commerce Case Study IV – How to Motivate Fred Maiorino? This case shows how the importance of manager’s leadership by the example of Reed’s managing style. Fred Maiorino was unmotivated and frustrated by his boss Reed and was wrongfully terminated by him and was discriminated against by his age. This case is a good example of why choosing leaders within an organization is important. Main Factors Leadership Skills
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Fred Maiorino Case Analysis of Critical Issues This paper will discuss the actions that sales manager‚ Jim Reed‚ undertook which failed to suitably motivate the top salesman Fred Maiorino at Schering-Plough. We will inspect the position Reed took in advancing Fred’s sense of psychological contract breach and eventual violation‚ and Reed’s contributions to the discriminations acted upon to Fred (Epitropaki‚ 2013). It is imperative to understand the psychological damage that Fred went
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Case: How to Motivate Fred Maiorino Introduction Fred Maiorino had been a successful sales manager for Schering-Plough Corporation for thirty-one years before Jim Reed was named general sales manager over the South Jersey sales district that included Fred’s sales territory. Afterwards‚ Reed implemented several changes to try to boost sales including a new performance appraisal system and a hands-on coaching style to motivate his sales staff. The problem arose with Reed’s inability to motivate
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Case 5-1 Stern Corporation (a) Individuel Case Study After the controller of Stern Corporation had ascertained the changes in accounts receivable and the allowance for doubtful accounts in 1998‚ a similar analysis was made of property‚ plant‚ and equipment and accumulated depreciation accounts. Again the controller examined the December 31‚ 1997‚ balance sheet [see Exhibit 1 of Stern Corporation (A)]. Also reviewed were the following company transactions that were found to be applicable to these
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