Case Study Infosys

at Schwab and that Castro acted upon protected company data lists to gain an unfair competitive

In this case, there are several conspirators who is involved in the fraud receiving punishment from either SEC or federal government. Robert Levin, the AMRE executive and major stockholder, and Dennie D.Brown, the company’s chief accounting officer, were subject to the punishment in the form of a huge amount of fine by the SEC and the federal government. This punishment came from reasons. After AMRE going public, the company have the obligation to publish its financial reports but its performance did not meet expectation. The investigation by SEC shows that Robert took the first step of this scam, fearing the sharp drop of AMRE’s stock price because of the poor performance of company. He abetted Brown, to practice three main schemes to present a false appearance of profitable and pleasant financial reports. Firstly, they instructed Walter W.Richardson, the company’s vice president of data processing, to enter fictitious unset leads in the lead bank and they originally deferred the advertising cost mutiplying “cost per lead” and “unset leads” amount, so that they deferred a portion of its advertising costs in an asset account. The capitalizing of advertising expenses allowed them to inflate the net income for the first quarter of fiscal 1988. Secondly, at the end of the third and fourth quarters of fiscal 1988, they added fictitious inventory to AMRE’s ending inventory records, and prepared bogus inventory count sheets for the auditors. Thirdly, they overstated the percentage

According to AU 317, the term illegal acts, for purposes of this section, refers to violations of laws or governmental regulations. Illegal acts by clients are acts attributable to the entity whose financial statements are under audit or acts by management or employees acting on behalf of the entity. Illegal acts by clients do not include personal misconduct by the entity's personnel unrelated to their business activities. Illegal acts comprise of Omissions and concealments involving a breach of a legal or equitable duty which result in damage to another. Fraud on the other hand deals with an intentional illegal act which results in a material misstatement of the financial statements. Example of fraudulent actions could be: manipulation, falsification or alteration of records or documents; suppression of information, transactions or documents; recording of transactions without substance for one’s financial benefit. (AU 316) Looking at the evidence at hand, we realize that although Vinard’s bidding process may be prone to some

However, not all companies succeed to comply with all regulation, even though apparently it looks that all operations are lawful. For instance, United States vs. Kay case, No. 05-20604, 2007 U.S. could lead to broader enforcement actions under the FCPA (“FCPA Gets Broader Reach”). The company President (Douglas Murphy) and Vice President for Caribbean Operations (David Kay) at American Rice, Inc. took several steps in order to reduce sales and taxes costs to rice exported to Haiti. Even though their actions included paying officials to resolve tax issues, underreporting imports to reduce duties and taxes, paying officials to accept the underreporting, the district court granted a motion to dismiss the indictment, holding that the scope of FCPA did not extend to paying foreign officials for the purpose of reducing taxes. In contrast, the court of appeal reversed in United States vs. Kay, holding that bribes paid to foreign officials in consideration for unlawful evasion of sales taxes fall within FCPA. As a result, the jury found Kay and Murphy guilty of violating the FCPA by paying foreign officials to retain their business in Haiti (“FCPA Gets Broader Reach”). Moreover, the court rejected defendants’ argument that its interpretation of the FCPA extended criminal liability under the statute

In September 2005, a former senior executive from Wal-Mart de Mexico sent an email to a high-ranking Wal-Mart lawyer, referencing on how Wal-Mart de Mexico had bribed foreign officials to expedite permits to win market control in Mexico. The emails and subsequent conversations gave specific names, dates and bribe amounts. Wal-Mart followed up with an internal investigation and eventually found a paper trail of suspect payments. In addition, they found documentation implicating that, not only did the top Wal-Mart de Mexico executives know about the payments, but they had also taken pre-cautions to hide them. The lead investigator documented the findings by stating

Well one red flag is that his performance appraisal has decline in every form especially his management skills. But when you look at the Syntech System’s articles of incorporation many red flags appear. One being that the addresses of Brian and Syntech Systems are identical. Also the name of the board of directors and his wife is Debra. So she must have used her maiden name to create a shell company to get money from Excursion Airlines.

Information system is a combination of hardware, software, infrastructure as well trained personnel who organized and facilitate planning, control, coordination and decision making within an organization. Information systems are also able to implement a vital integrated set of components for collecting, storing, and processing data. With this, it provided organizations with the necessary information, knowledge, and digital products needed. Information system bring the meaning of business applications that manage their operations, compete in the market place, manage accounts and human resources. This system have a vast variety of components that are crucial for a enterprise, business to function at his highest level, IT software is responsible that all system are reliable and up to date.

Although, the fact of this case is, the project is being funded by public’s money and my company is misusing the fund. I have taken every step to follow organizational steps to solve this issue within the company because I never wanted to be involved in an organizational disobedience by going against an organizational policy. However, here the quality of the project is in question because of the wrong submissions of one subcontractor, so I argue that problem of the project must be solved. To resolve the issue, I decided to take a further action by whistleblowing to the public by taking information that I have

The criminal complaint, filed in federal court in New York, offers the clearest view yet of one of the biggest cases of alleged insider dealing ever. In its lawsuit, filed in federal court in Manhattan, the Commission alleges that the defendants violated the antifraud, periodic reporting, record keeping, and internal controls

In October of 2011 investigators ended Kerry F, Khan’s schemes of bribery and kickbacks. For several years Khan had managed the Army Corps of Engineers, and had collected 30 million dollars through his trickery. He did so by hiring subcontractors that he made inflate their bills by adding products of services they didn’t actually do. He would certify it and

Records falsification was not the only illegal activity the Rigas family was wrapped up in. The family used company funds, unbeknownst to their investors, to finance personal endevours and interests. Examples include using corporate money to build a $12.8 million golf course on the Rigas property, using the company plane for personal vacation trips including a safari to Africa, and funding for two Manhattan apartments for his family (Markon, 2014). Not only this, but John Rigas purportedly used the company jet to fly a Christmas tree two times to his daughter in New York (Barlaup, 2009)! All of these incidents are just brief excerpts of the fraud and misuse of company funds that John Rigas and his family committed without any intention of ever paying back into the company. These actions, namely lying and stealing, prove to be the heart of the two moral issues that will be further analyzed.

During 2009, a federal investigation turned up irregularities in the identity documents of immigrant workers from when they were hired. 2000 workers were terminated, leading to an inability to fulfill the demand.

Neal A. Roberts, an employee of PricewaterhouseCoopers (PwC) found out that his employer was earning millions of dollars a year by way of a billing method that he thought was doubtful. PwC had been collecting large rebates on airline tickets and other travel expenses being charged as expenses to clients of the firm. These rebates were not being returned to the firm’s clients in the form of savings, but the firm was keeping these rebates for it. This was working, because the firm would bill the clients for the full price of airline tickets and other travel-related expense, but privately, the firm negotiated discounts and rebates that they then got at the end of the year based upon total amounts spent. The clients did not know

This case happened during the economy recession recently. Overall, the point views from the company were claimed from the

Infosys should consider expanding its operation into other foreign markets and industries. As indicated in the article, Infosys gets over 70% of its revenue from the United States and the majority of its big clients (such as Goldman Sachs, Visa or JC Penny) come from various industries but all of them are very sensitive to changes in the US economy. In order for Infosys to not only maintain but also increase their sales growth in spite of the referenced economic downturn, Infosys has to expand its global account management system along with restructuring its strategic account management. First and foremost Infosys should build a reliable network of foreign intermediaries in Asia and