Economic Impact On The Company

1071 WordsApr 27, 20165 Pages
Economic Impact: Often in cases of bid rigging the amount of money that the company loses is often significantly higher than the if the contract had be awarded to other firms. Given the number and costs of the change orders involved with this case, led to the final construction costs being almost $82,000 over the average of all bids from other construction firms, resulting in TBB losing a great deal of money for the quality of the work performed. Of this $82,000, $62,893 was withdrawn by Larkin Construction in the form of cash. A reasonable assumption with this money is that it was dispersed to parties involved in the bid rigging scheme. Cash would be used (as opposed to ACH transfers) to conceal who benefitted from the bid rigging scheme. These payouts ultimately are what increased the total construction costs, as the increased costs are to cover kickbacks to those involved in the scheme. Misstating Financial Statements- Overstating Revenue through accounts receivable Perpetrators and Pressure: There are some obvious inconsistences between what the accounts receivable being reported was and what our audit team calculated. The perpetrators of this fraud was a combination between Phil Ackers (President) and Julie Roper (Assistant to the President). During our interview, Phil stated that he pushed Julie to sell more group tickets for the season. This was apparent that Julie did apparently sell more group tickets; however, once our audit team started looking into the group
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