: And the Fraud Continues - Case Study Example

Only on StudentShare

Extract of sample
: And the Fraud Continues

To illustrate, the company did not have proper internal control mechanisms to keep the level of bad debts and accounts receivables within the fixed range. Hence, even poorly performing firms obtained huge amounts of credits from MCI and this condition adversely affected MCI’s operational efficiency. When receivable collection periods went beyond the stipulated timeframe, the organization was forced to write off some of its receivables. Undoubtedly, this condition caused the firm to experience a rise in its expenses and thereby a decline in earnings per share. Ultimately, MCI’s stock price dropped due to the decline in EPS. As Lyon and Tocco (n. d.) point out, Pavlo used a variety of accounting tricks to convince the management that the level of bad debts and amount receivables had fallen under the safety range. In other words, Pavlo totally manipulated the accounting system to conceal the actual state of affairs of the company. It is obvious that the absence of a well executed internal check system assisted Pavlo to apply unfair accounting tricks to deceive the company management. A person is not allowed to carry through a transaction from beginning to end under the internal check system. ...Show more

Summary

Case Study 1: And the Fraud Continues Case Study 1: And the Fraud Continues Introduction Accounting fraud is one of the greatest threats to the long term sustainability of organizations today. The last decade witnessed a series of corporate failures in the United States due to accounting fraud…
Author : alejandra09
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Case Study: And the Fraud Continues"
with a personal 20% discount.
Grab the best paper

Related Essays

The Impact of Social Network in Tourism
Social networking is increasingly becoming one of the most vital information sources for travelers. Earlier travelers used to be dependent on travel agencies, their suggestions and advices while planning any trip. However, over time individual traveling are gaining popularity.
40 pages (10000 words) Thesis
Fraud Case with Enron
taken place in the modern 21st century commerce was the case with Enron. Enron’s scandal without a doubt has been the focal point for one of the biggest busts in the history of American entity (2002). The Enron Scandal and the Neglect of Management Integrity Capacity http://scholar.googleusercontent.com /scholar?
3 pages (750 words) Assignment
Fraud
From the author, we learn that these two had very conflicting character traits in that Kearns had learned about business from a very tender age, and as he grew, he acquired business skills that made him prosper. However, he always lived beyond his means which forced him to work even harder to get the money.
4 pages (1000 words) Essay
Flayton Electronics
Flayton Electronics Advanced technology in the computer industry has come with increased insecurity of operating them. More than before, companies find themselves in a fix after their confidential data leaks to persons outside the company. Hackers of the 21st century have equipped themselves with knowledge to crack firewalls and decode encryption of any kind of data.
3 pages (750 words) Case Study
Goldman, Sachs Securieties Fraud Case
According to the SEC, Goldman disguised the issue by flaunting the function of a highly regarded independent firm within the selection of the underpinning securities. The paper explores the fraud case that Goldman Sachs settled with Securities Exchange Commission.
8 pages (2000 words) Research Paper
Case study
Question One Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 ?000 ?000 ?000 ?000 ?000 ?000 Plant and Equipment Sales revenue (600) 450 470 470 470 0 470 Less Costs   Materials – 126 132 132 132 132   Labour – 90 94 94 94 94   Overheads – 30 30 30 30 30   Depreciation – 120 120 120 120 120 Working capital (180) – – – – – Interest on working capital – 27 27 27 27 27 Write-off of development costs – 30 30 30 – Total costs (780) 423 433 433 403 403 Operating profit/(loss) Add: Depreciation Net cash flows (780) 27 120 147 37 120 157 37 120 157 67 120 187 67 120 187 Note: The assistant did not include the initial cost of the new equipment in the year zero which amounted t
8 pages (2000 words) Essay
Case Study: Global Hardwood Company.
Global Hardwood Company (GHC) is an international company that operates in more than one country. The company began as a single-family business but it expanded and became a public limited establishment. The GHC is headquartered in an attractive marketplace within the town of the English Midlands.
9 pages (2250 words) Essay
Earnings Management: The Continuum from Legitimacy to Fraud
Earnings Management: The Continuum from Legitimacy to Fraud Question. Earnings management entails an extensive range of illegitimate and legitimate actions undertaken by companies and business organizations’ managements, affecting the entire legal entities’ overall earnings.
38 pages (9500 words) Research Paper
Drabinsky and Gottileb: Accounting Case Study
Drabinsky and Gottileb operated a kickback scheme from 1990 to 1994. In the kickback scheme two Livent vendors are appointed who helped Drabinsky and Gottileb, siphon millions of dollars from the company directly into their own pockets. This is an illegal activity since both Drabinsky and Gottileb are the major shareholders of the company, but their rights for the share comes after clearing the dues of the other shareholders.
16 pages (4000 words) Case Study
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT