A. Introduction This research report attempts to highlight the circumstances that led to the failure of Refco Inc.; a New York based multinational commodities and forex brokerage firm. It focuses on the strategy deployed by the company’s executives in perpetrating fraudulent acts in misrepresenting the company’s financial accounts; the revelation therein have been described by many as one of the largest bankruptcy cases in the history of the United State’s financial services industry. A critical
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Allegations of Diamond Foods Inc.’s’ Understatement of Accounts Payable. Abstract On November 1‚ 2011‚ Diamond Foods Inc.’s (NASDAQ: DMND) unexpectedly disclosed serious discrepancies (possible understatement of accounts payable) regarding its 2011 financial statement reports and as a result announced its decision to delay its acquisition of the Pringles snack business from Procter & Gamble Company (P&G) (NYSE: PG). Naturally‚ the November 1‚ 2011 confession caused an immediate
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Any contract for the sale of goods that exceeds $500 falls under the statute of frauds and must be in writing to constitute an enforceable contract. The contract between Tidwell and Anthony amounts to $50‚000 and must be in writing to be enforceable‚ which presents the first issue in this problem. There are‚ however‚ alternative means of satisfying the Statute of Frauds. In this case‚ Tidwell provided Anthony with a good faith payment of $10‚000 when the oral contract was entered into on June
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Internal Controls Internal controls are all the procedures and measures companies put in place in order to achieve two specific goals related to accounting (Kieso‚ Kimmel‚ & Weygandt‚ 2011). The first goal is the protection against loss of assets from various sources such as theft or accounting error (Kieso‚ Kimmel‚ & Weygandt‚ 2011). Companies‚ clients and shareholders must have assurance that there is suitable control over all business assets like inventory and bank accounts all the
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Hornet Consulting company INC. Contacts: Tell (916) 952 -9110 E-mail: santisoltero1@gmail.com Date: October 31‚ 2016 To: Kevin Lovelace‚ Manager From: Santiago Soltero‚ Assistant Manager Subject: 360-Degree performance system This response is about a recent issue related to improving the performance appraisal of employees of Hornet consulting company Inc. The meeting confirmed that our organization is contemplating to add the 360-degree feedback system to evaluate employee performance and
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Phar-Mor‚ Inc was a thriving discount grocery store in the late 1980’s. Phar-Mor was moving product quickly but profit margins were not significant enough to pay the bills. By the early 1990’s‚ Phar-Mor declared bankruptcy due to fraudulent financial reporting and misappropriation of assets‚ making it one of the largest frauds in U.S. history. Below‚ we will use auditing standard AU 316.85 Appendix A in conjunction with the video “How to Steal $500 million” to analyze how incentives/pressures
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SHAKESPEARE IS A FRAUD January 25th 2012 Shakespeare is a Fraud One cannot write thirty-six plays‚ one hundred and fifty-four sonnets and two long narrative poems if they were ordinary. But unbelievably‚ William Shakespeare did just that from 1564 – 1616. People have questioning how Shakespeare achieved writing such great pieces of literature‚ when the behind the scenes story does not add up. There are no records to prove he wrote anything and there is proof
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Case 1.9 ZZZZ Best Company‚ Inc. Delta. Describe the elements of the Fraud Triangle that apply to this case. Assume you are the perpetrator. Is there a better way to perpetrate this fraud? If there is‚ describe your method. Specify practical recommendations for the client to prevent this fraud from occurring in the future. The first element of the Fraud Triangle in the case of ZZZZ Best‚ case 1.9 is Incentives/Pressure. Incentives/Pressure- As a result of the pressure placed on a person who
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any contact or hold to them period. That’s taking away from the patients who really are in need of the medicine. Usually if this kind of incident happens then the nine times out of ten the victim knows the thief. Any kind of medical theft is facing fraud. There are many other consequences they have to face at different ranges. In all they could be caught and held accountable for the
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In her captivating book Who Killed Healthcare‚ Harvard Business School professor Regina Herzlinger paints a sad reality of the United States’ failing healthcare system. Herzlinger charges our government‚ healthcare employers‚ insurers‚ hospitals‚ and health academics of taking the “care” out of health care‚ or as she puts it‚ “killing” health care. With 46 million Americans still uninsured and with an annual spending of $2 trillion on health care‚ the search for an answer to this crisis is one that
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