Bay Fleur De Lys Case Study

Our project team analyzed the Fraud and Illegal Acts Case (True blood Case Studies- Case 08-9), which involves a questionable sales transaction made between Jersey Johnnie’s Surfboard, an SEC registrant, and Mr. Sinaloa, an independent sales representative of the company. As a simplified overview of the case, an external audit firm was hired on to perform a year-end audit of Jersey Johnnie’s Surfboards, Inc. Towards the end of the audit, the engagement partner notified the auditors that there could be a possibility of fraud and illegal acts made by the company.

“March of Dimes” charity was in news in November ’15, because of an alleged fraud committed by one of its employees named Ms. Karima Manji. Karima Manji has been working with MOD since 2005. She has been handling the portfolio of property manager and used to look after MOD’s non-profit residences. She is alleged to have used “various means” to siphon funds from the charity, including forging invoices and expense claims, and funnelling money into a false March of Dimes bank account. She has been charged with fraud over $5,000, theft over $5,000, possession of property obtained by a crime over $5,000 and presenting a forged document. She also served as the executive director of Kingsmere retirement living in Alliston and has been placed on administrative leave after being charged by Toronto police of allegedly defrauding MOD of $0.8 Mn. Officials at MOD has confirmed of ongoing investigation into the incident and those of Kingsmere retirement living have stated that “Manji’s employment is not linked to her involvement with MOD’s”.

2) Frank A. Tassone; the former business manager, Pamela Gluckin; and an accounting clerk, Debra Rigano, who is a niece of Ms. Gluckin embezzled money in a scheme in which Dr. Tassone and Ms. Gluckin and nine of their family members and friends charged $5.9 million for personal items and cash advances on 74 personal credit cards. Then Ms. Gluckin and Dr. Tassone used district checks to pay those bills. The audit found that Dr. Tassone and

Heron Bay Subdivision due to the following that will represent violations: “Employees and their immediate family may not accept anything of economic value (i.e. money or any other thing having economic value) as prohibited by the Louisiana Code of Governmental Ethics (R.S. 42:1111-1121) from any person or firm doing, or seeking to do, business with the Parish.”, “Employees may not give, offer, or promise, directly or indirectly, anything of value to any representative or any entity in connection with any transaction or business that St. John the Baptist Parish may have.” “Any conflict or potential conflict of interest must be disclosed to the St. John the Baptist Parish Administration. Failure to do so may result in discipline, up to and including

Only three wolves now remain on Michigan’s Isle Royale, down from nine wolves last year, Michigan Technological University reported. This means that one of the most studied wolf packs in the world are in serious danger of extinction. Wolves on Isle Royale in Michigan have fluctuated over the past 50 years going from 11 wolves all the way to 50 in 1980. But now the wolves are at an all time low at only 3 wolves. Isle Royale is a natural habitat that should not be managed by man. Nature should be allowed to take its course, even if it means the loss of the population of wolves of Isle Royale in Michigan.

1) Anna Thomas committed a fraudulent act by making personal charges and cash withdrawals on Rusher Automotive’s credit card. The accounting profession believes there are three conditions necessary for fraudulent behavior. (See Statement on Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit. For additional explanation, you may want to review Buckhoff [2001].)

In the case of Phar-Mor fraud, the company was involved in cover up and some accounts were created to hide the fraudulent activities. Bad inventory counts in the stores were made to help with the cover up and deceit about activities that cost hundreds of millions of dollars. (Williams, S.L., 2011)

On December 19, 2016 at about 8:30 am Mrs. Padgett made me aware of funds that had been taken out of a Gift Card WEPS District had set up the previous year through an Amazon account. Her concern was Christian Linville, an 8th grade student who attend NEMS, had used the account to purchase personal items. Mrs. Padgett stated she was going to purchase a book she wanted to use in a reading class and was going to use the funds to make this purchase. The account’s login was changed when she attempted to get into the account. Mrs. Padgett reset the password and accessed the account. Christian Linville’s name was entered into the shipping information and the purchase history showed items were purchased by Christian and shipped to his home address.

What happened: Millions of dollars in losses were split among the 129 stores and put as an expense on each stores balance sheet ->. In order to balance the expenses, management had to boost its assets by inflating inventory -> The auditor Coopers&Lybrant checked only 4 stores out of 129 in order to safe their money. In addition, they told senior management which stores they will check -> Phar-Mor prepared the inventory in accordance with its balance sheet -> The auditing firm was unable to uncover the fraud.

On July 15, 2015, AP closed an internal fraud case at the Hudson’s Bay Pte Claire store for a value of $3,695.26. Exception reports revealed a chargeback of $3,695.26 on a credit card where the card number was entered manually. AP reviewed the DVR footage and found that the customer seemed to be friends with the associate. Further investigation revealed on Facebook they were friends. The associate was interviewed and the associate admitted to putting through manually the fraud credit card for his friend and received 6 items for $970 on the transaction.

Education on these sheets were done by the nursing education in beginning of the year. No further action required

In the case study Carolina Wilderness Outfitters, Sue Ramos the head of internal auditing, launched an investigation based on improper termination, which turned up a new allegation of possible accounting irregularities and potential fraud.

As requested I have completed an analysis of the accounting fraud case at Computer Associates (CA) in preparation of your speech at the American Accounting Associations annual meeting. I have structured my analysis to correspond to six key questions that arose from the case and Stephen Richards actions while Head of Global Sales at Computer Associates.

The case describes that, "...the accounting system could not be locked at the end of the month and there was no audit trail. Sachdeva and Mulvaney were thus able to make undetected post-closing changes to the books and bypass an internal control requiring Michael J. Koss to authorize those changes". These post-closing changes may be false entries done to hide theft during the accounting period. Further, because the reconciliations were done by the same people who initiated or recorded the transactions, the fraud could be covered up. For example, had one of them made an unauthorized purchase at a retail store where the expense were obviously not business related, they could have assigned the expense or expense description to a vendor where the transaction amount would have been normal. If the accounting system was not locked, they could have also just posted the transaction date back to a prior period that isn't likely to be reviewed.

AICPA Code of Professional Conduct principles prevents vises such as fraud that are experienced in accountancy field. Audit is the best measure of the effect of the fraud that are imposed to investors by accountants. The relationship of the investors and account holders are supposed to be affirmed through auditing to ensure accounting principles are upheld(Weirich, Pearson, & Churyk, 2010). Improper loss of the funds through propagation of the accountant officer should be treated as fraud and criminal activity that should lead to prosecution. Therefore, the paper seeks to relate two fraud cases that have been audited and presenting AICPA Code of