Case Study : Candy Bookit, A Non Partner Manager Cpa

2547 Words Dec 9th, 2014 11 Pages
Aman Shrestha
December 9, 2014
Final Case Study
1) Candy Bookit, a non-partner manager CPA, left her CPA firm to work for Artifice Company, a holding company for a group of family owned corporations. The company is engaged in government projects and their large projects involves government financing. The corporations file separate tax returns. Candy had been a part of Artifice’s review engagement team while at the CPA firm and had developed close relationship with the family.
She discovered a number of checks that were paid to Mr. Munster by the Darkside Unit of the company as consulting fees. These fees were billed to the government projects. At the same time, she discovered checks worth $2.5 million deposited into Underground Projects Unit as capital contributions. The UPU division was known for being the most volatile and the most profitable division. One of the most peculiar things about these checks to Mr. Munster were that almost all of the checks did not have a second signature which was usually required by the bank.
Firstly, she talked to her boss about her discovery which was shrugged off. Then, she talked to Pugsly, a family member, who confirmed her discovery but was no further help. Finally, she talked to Morticia, a family member who managed UPU. Morticia was a former US Senator and all she did was to assure her that she would be able to take care of any problems if they arise. She then talked to Fester, a partner at her CPA firm in charge of Atrifice’s…

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