Business Law Case Summary

For both of those years, E&Y's opinions stated that E&Y conducted its audit in accordance with Generally Accepted Accounting Standards (GAAS) and that, in the opinion of E&Y, the consolidated financial statements presented fairly, in all material respects, the financial position of CBI. During the 1992 and 1993 audits E&Y had discovered numerous disbursements made by CBI in the first few weeks of the next fiscal year that were unrecorded liabilities. These disbursements included payments to the company’s vendors that had been labeled as “advances” in the company’s accounting records. The explanation that was given by the CBI’s personnel was that “when CBI is at its credit limit with a large vendor, the vendor may hold an order until they receive an advance, CBI then applies the advance to the existing A/P balance”. E&Y auditors readily accepted the explanation and chose not to record the items as unrecorded liabilities. In fact, the financial statements prepared by E&Y did not fairly present CBI's financial position because E&Y did not detect certain unrecorded liabilities when it performed the audits. Although Ernst & Young auditors had discovered a lot of red flags, suspicious activities and behaviors, unrecorded liabilities they did not properly investigate those activities, they didn’t require CBI to prepare appropriate adjusting entries for them and as a result, failed to notify CBI’s board of directors about the existence of all these

The plaintiff (Southern Prestige Industries, Inc.) initiated an action against the defendant (Independence Plating Corp.) in a North Carolina state court for a breach of contract. The plaintiff alleged that defects in the defendant’s anodizing process caused the plaintiff’s machine parts to be rejected by Kidde Aerospace. The defendant being a New Jersey corporation and having its only office and all of its personnel situated in the state filed a motion to dismiss citing lack of personal jurisdiction. The trial court denied the motion and the defendant appealed arguing that there were insufficient contacts to satisfy the due process of law requirements

Sylvia Burwell Secretary of Health and Human Services Petitioners vs Hobby Lobby Stores and Conestoga Wood Specialties Corporation vs Secretary of Health and Human Services (U.S 2014)

Elizabeth Blackwell showed herself as a dedicated and diligent doctor during five years of work in Neurological Associates, and made a significant contribution to the profit margin of the partnership. The partners were delighted with hiring Blackwell in 2005 and they introduced her to medical physicians at a conference. But the referral base Blackwell went through was not the result of that investment by the partnership but instead it was the evidence of her professionalism in neurological sphere.

A) If tom finalized the loan agreement before the partnership is formed, he is negotiating the agreement on behalf of him personal. According to Georgia law, an agreement becomes enforceable when there is a meeting of parties’ minds “at the same time, upon the same subject matter, and in the same sense.” Cox Broadcasting v. National Collegiate Athletic Ass'n, 250 Ga. 391, 297 S.E.2d 733, 737 (1982). The letter of intent before the partnership formation was not applied under I.R.C §721 to be an exchange of property and Tom would have to recognize a gain in exchange of partnership interest. Also, if he negotiated the letter of intent to get a loan for the partnership because of his experience in the real estate business, he is rendering a

No voluntary partial payment of a claim based on alleged liability for injury or property damage shall be construed as an admission of fault or liability, or as a waiver or release of claim by the person receiving payment.

CHARLESTON, W.Va. — Kanawha County residents met Tuesday to learn more information about payments from a court settlement related to the 2014 Elk River chemical spill.

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

Dismissing Smith based solely on a poor attitude without providing evidence that she is hurting departmental job performance or other employees could end the company up in court facing a wrongful discharge suit. It is the manager’s responsibility to interpret and enforce a disciplinary process or policy in a fair and consistent manner. Trent needs to start by determining a plan of action, one that balances the business necessities against worker rights and documenting complaints about lack of professionalism, cooperation, and teamwork. Disciplining can be a gray area without clarifying the rules and pre-determining the viable consequences for violations that are reasonable and defendable.

Key issues discussed at the meeting include probation, renewals, reinstatement, applications, examination attempts, administrative hearings amongst others.

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

Kate is the owner of a successful business, selling women’s shoes. Her business is expanding fast and she wants to upgrade her business structure to a more appropriate one. What would be your recommendation to Kate and why? What are the factors that influence you with this advice?

Legal precedence is the justice’s reason for making the decisions that they do. (Knight, Epstein, 1996.) It is a decision that becomes the basis or bias for similar cases. (Bohm, 2012). Stare Decisis is to stand by other cases or to go with a decision from another case. Lawyers and legal teams spend many hours referencing and researching cases that have set precedences for crimes they are defending. By doing this they can persuade judges to rule in their favor because of cases that have already been determined or by Stare Decisis. Such cases as Roe vs. Wade or Brown vs. The Board of Education are precedent cases where the judges ruled and many other defendants with similar cases have won because of these decisions. Although all of the cases that are similar can not win because of these cases it does give their attorney’s grounds to fight and a good legal defense.

Olley v Marlborough Court Ltd [1949] 1 All ER 127 (UK Court of Appeal), Reg Glass Pty Ltd v Rivers Locking Systems Pty Ltd (1968) 120 CLR 516 (High Court)

The case states a financial statement fraud, which took place at Hollinger International, located in Chicago. Ms. Stitt has complied with AU-C 200, which describes the meaning of obtaining reasonable assurance. As Ms. Stitt`s testimony illustrated there was no absolute assurance that the auditors can provide it because of the nature of audit evidence. Nevertheless, the auditors can implement AU-C 200 to have a reasonable assurance, which is acceptable. To obtain sufficient evidence, the auditors need to have a sufficient and appropriate evidence to make the audit clear and reduce the audit risk. The AU-C 240 recommends maintaining the data, and detecting fraud from financial statement to make it free from material misstatements. I think that Ms. Stitt