Waste Management Accounting Fraud Case Review the SEC’s case against Waste Management in order to answer the following questions: What were the incentives for committing the fraud? What was the relationship between management and the auditors? Why didn’t the auditors prevent the fraud? What (specifically) accounting methods were used to fraudulently inflate Waste Management’s profits? What accounting methods did they use to try to conceal part of the fraud? What were the financial and social
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Waste Management Fraud Waste Management‚ Inc. today is dedicated to serving our communities by collecting and disposing of garbage and recycling. Over the years they have had to deal with a rise of issues such as environmental and global warming. Waste Management has also tried to reduce its waste collections while turning any valuable resources it can into clean and renewable energy. Waste Management has been around since the late 1800’s‚ and is a holding company that has all its daily operations
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Waste Management Inc. Fraud I. BRIEF HISTORY Waste Management Inc is a company in North America that provides waste and environmental services. This company was founded by Larry Beck in 1894. The company ’s operations also involved managing air and gas‚ environmental and groundwater protection as well as environmental engineering. By 1971‚ the company became more public after the 133 acquisitions and the $82M in revenue that were made and soon became the largest waste hauler in the
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Fraud Triangle Identifying fraud indicatives of each of three conditions: incentives‚ opportunities‚ and attitudes Significant Management Estimation Identifying balances based on significant management estimation techniques Inherent Risk associated with Estimation Accounts involving significant management estimation viewed as inherently risky Auditor’s responsibilities for examining management-generated estimates AU Section 342 AU Section 342‚ Auditing Accounting Estimates‚ provides
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1. Based on the fraud triangle‚ there are several factors present at Waste Management that are indicative of each of the three fraud conditions. Incentives: from the case‚ the SEC staff claimed that the top Waste Management officers’ fraudulent conduct was driven by greed and a desire to retain their corporate positions and status in the business and social communities. Their bonuses‚ retirement benefits and stock options closely correlate with the performance of the company. If the company
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Discussion Topic #1 The fraud Triangle is a very important tool in seeking to understand why people commit fraud. In the examination of any fraud case according to the Fraud triangle there are three major elements‚ pressure‚ opportunity and rationalization. To illustrate the relevance of these three factors we can examine a recent fraud case i.e. the South Carolina Hospitality Association. In this case Rachel Duncan was the accountant for South Carolina Hospitality association‚ she is charged with
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more basic concepts in fraud deterrence and detection is the fraud triangle. The fraud triangle is also known as Cressey’s Triangle‚ or Cressey’s Fraud Triangle. Cressey’s Fraud Triangle gets its name from Donald Cressey. Cressey was one of the “nations leading experts on the sociology of crime”. He authored a few books including Other People’s Money‚ Theft of the Nation‚ and co-authored Principles of Criminology with Edwin H. Sutherland. Cressey is honored by many anti-fraud organizations‚ including
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AC572 You Decide Jan. 24‚ 2011 When evaluating this case using the three elements of the fraud triangle I have concluded that the potential pressures for Chris to commit fraud are greater than for others. The pressure is from Chris himself because he wants what others have or what he doesn’t have. This is due to the fact that Chris is young and impressionable may feel as though he doesn’t make enough money to obtain the material possession he desires or see others with. He may also be of
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Private Sector Participation in Integrated Sustainable Solid Waste Management in Low- and Middle Income Countries DISSERTATION of the University of St. Gallen‚ Graduate School of Business Administration‚ Economics‚ Law and Social Sciences (HSG) to obtain the title of Doctor Oeconomiae submitted by Louigueur Dorvil from Haiti Approved on the application of Prof. Dr. Thomas Dyllick-Brenzinger and Prof. Dr. Matthias P. Finger Dissertation Nr. 3381 Schmitt-Druck‚ Essen The University
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