Case Study: Global Crossing

#2. Internal Control Risks; audit planning decisions. Some internal control risks common among large, high-volume retail stores include dealing with inherent limitations and potential fraud. Even if a well-designed internal control system is in place, the employees using it are ultimately the deciding factors in its effectiveness. For example, management may instruct an employee or easily-influenced executive (of another company) to alter information or confirmations or multiple employees may conspire to steal assets or misstate records (collusion; misappropriation of assets).

In Arthur Miller’s The Crucible, people in Salem, Massachusetts experience a barrage of court trials in which people were persecuted and sentenced to death. These persecutions divided families and divided communities, but for some, there were opposing results. John and Elizabeth Proctor, who are in a struggling relationship, undergo an unusual change in one another. At first, John and Elizabeth Proctor are a couple that is uncomfortable around each other. John Proctor was committing adultery with their household servant named Abigail Williams.

Fraudulent financial reporting is one form of corporate corruption and may involve the manipulation of the documents used to record accounting transactions, the misrepresentation of accounting events or transactions, or the intentional misapplication of Generally Accepted Accounting Principles (GAAP) (Crumbley, Heitger, and Smith, 2013). Examples of fraudulent schemes befitting of this category abound and usually involve financial statement items that have been misclassified, omitted, overstated, undervalued, or prematurely recognized. One case involving CEO Bill Smith of Moonstay

This is case study of what caused the increase and fall of Nortel and what might be done to stop it. problems with misreported monetary information, board structure and the potential for fraud might are prevented if Nortel had taken preventative measures and had a written fraud interference policy. Having a Code of Ethics and a Code of Conduct in situ helps to align managers with the interests of the stakeholders and is for the bigger sensible of the corporate. It additionally permits the corporate to proceed with prosecution of the party or parties concerned within the fraud. Processes place into place to stop fraud by workers

This subject company in this case study is WoolEx Mills. The top management team at the Mills had to act fast to prevent the accusations charged upon them, so that they may venture deep into the United States market. In the process, they had to act in a way that will present the company’s financial statements; cash flows in a way that they did not show any suspicious fraudulent activities. The type of fraud in this case study is known as manipulation of accounts which involves the act of offering the accounts in the way they are not in reality.

Potential for misstatement & fraud: Compliance with the established procedures and controls were found to be ineffective. The fraud reporting process, technically put in place does not serve its intended purpose. The ineffective control environment has created an attitude and tone across the company where errors and inappropriate behavior may be seen as acceptable, thus creating opportunity for concealing fraud and potential misstatements.

Appendix A.2 also lists several factors that could provide opportunities for management/employees to commit fraud. One factor that could lead to fraud is if, “There is ineffective monitoring of management as a result of: domination of management by a single person or small group without compensating controls.” The auditors should have taken notice of the lack of controls and segregation of duties with respect to Phar-Mor’s

The second part is opportunity. The opportunity to commit fraud usually arises through weak internal controls.

When I think of John Smith, the first thing that comes to mind is, that he is the English man Pocahontas falls for. These stories were definitely not like the Pocahontas I remember watching as a kid. I didn't really picture him as the epic hero he seems to portray himself as. He sorts of advertises himself to his readers. I guess you could say that is his first use of propaganda. He boasts about his voyages, adventures and being captured. He talks about how he was captured, but with his bravery and intelligence he manages to keep from getting killed. Smith uses a lot of propaganda in these works. The abundant in raw materials like gold, silver and lead, how healthy the people are, which is probably a result of the fish.(124-125) This would attract the people that wanted to one day invest in this new territory. This new territory brings vast amounts of land. His overall goal is to bring people to

Fraudulent, erroneous, and illegal acts committed by a public company, usually at a managerial or executive level, have been a very serious problem for many years and have prompted development of strict and updated regulations, such as the Sarbanes-Oxley Act, in an attempt to prevent these occurrences. Unfortunately, these new or updated regulations are not enough to prevent these acts from happening, thus not alleviating the auditors of their responsibility to detect fraud. Some methods that management and auditors can employ to prevent and detect fraud, errors, and illegal acts are: improving knowledge, improving skills,

It was Roy Olofson, along with suing investors who “blew the whistle” for Global Crossing Ltd. According to Olofson’s attorney, he just wants a restitution for the job that he lost but isn’t likely to get it from the entity since it was then under a bankruptcy protection. Roy Olofson was formerly the VP for Finance of Global Crossing and is responsible for preparing the Financial Statements and SEC filings.

Royal Unibrew (“Unibrew”) is the second largest brewery group in Denmark with foreign operations in selected Western and Eastern European countries as well as export activities to more distant locations, such as the Middle East and Africa. The company is listed on NASDAQ OMX and currently has more than 16,000 shareholders1. Furthermore, they have a broad product range which includes beer, soft drinks, soda water, mineral water, and fruit juices. In this paper, I will exclusively focus on them as a brewery, i.e. their operations within the beer market.

Global Crossing came to its ascent as an organization during the height of the dot.com bubble, when oversight over technology companies was fairly lax, given the lack of understanding of the

INTERNAL CONTROL AND FRAUD DETECTION IN THE BANKING INDUSTRY (A CASE STUDY OF GUARANTEE TRUST BANK PLC)

The greatest opportunity for Minkow to commit fraud was ZZZZ Best’s lack of financial supervision. Lack of internal control facilitated manipulation of company’s assets and transactions. It gave the CFO the opportunity to falsify the documents and to create fictitious transactions. These transactions created formidable revenues on the company’s books and made it easy to borrow money from banks. The weak external audit was the other opportunity that allowed Minkow to commit fraud. The auditor was not familiar with the company and its related parties. In addition, the auditors placed too much trust in management produced documents and failed to verify key transactions. These two important reasons gave Minkow an opportunity to commit fraud.