Peregrine Systems Fraud Essay

The company’s revenues were not growing fast enough to meet these targets, so defendants instead resorted to improperly eliminating and deferring current period expenses to inflate earnings. They employed a multitude of imp roper accounting practices to achieve this objective. Among other things; the complaint charges that defendants:

By manipulating the financial statements, the company gave a false impression on its future prospects of the company, allowing them to more freely raise capital through the issuance of common stock, and inadvertently inflating stock prices.

Phar-Mor, Inc was a thriving discount grocery store in the late 1980’s. Phar-Mor was moving product quickly but profit margins were not significant enough to pay the bills. By the early 1990’s, Phar-Mor declared bankruptcy due to fraudulent financial reporting and misappropriation of assets, making it one of the largest frauds in U.S. history. Below, we will use auditing standard AU 316.85 Appendix A in conjunction with the video “How to Steal $500 million” to analyze how incentives/pressures, opportunities, and attitudes/rationalizations allowed for fraud to start and continue at Phar-Mor.

The financial reporting problem at Molex was that, “the profit on inventory sales that the company made between its

After reviewing the financial information of the Tech Tennis, USA, there was a concerned due to some unusual changes in the company’s accounts. Financial statements play a crucial part in the determination of the progress of an organization. It assists the relevant personnel to identify whether the company is making profits or making losses. Although unethical, some companies will tend to deliberately misrepresent some of their financial statement information to create a false impression of the company’s success. There are various techniques that organizations utilize to manipulate their financial statements such as overstating their revenues (Bierstaker, Brody, & Pacini, 2006). In addition, some organization will tend to inflate their sales without considering their cash flow amount that the organization has acquired which will be a red flag to investigate. Consequently, financial statements provide vital information that helps both internal and external users to understand the position of the organization. Some companies in an attempt to continue in the market, they end up manipulating their financial statements that create an illusion of the success of the organization.

Moreover, NutraCea also inappropriately documented revenue on a bill and hold Transaction in regards to a $1.9 million sale of product to ITV Global, Inc. in the 4th quarter of 2007. Which resulted in a misstatement of NutraCea’s operating loss of by over 89% in the 2nd quarter, 17.6% in the 3rd quarter and close to 7% in total all for the fiscal year 2007. To put the icing on the cake NutraCea misstated Form 10-K for the fiscal year 2007.

The amount listed is the enrollment agreement was 10,020.00 which gives a difference of :

On August 25th 2015 Co-Founder of OXYwater Preston J. Harrison and his Wife Lovena Harrison were sentenced for Wire Fraud, Money Laundering and Tax Crimes. (Investor Claims, August 2015). I chose this case because it has many different types of fraud, including wire fraud, money laundering, and tax fraud, conspiracy to commit fraud, concealment of fraud, theft and misappropriation of funds. What makes this case so interesting is that the husband and wife co-owners of OXYwater are not the only criminals. Their co-conspirator was Thomas E. Jackson;

This paper discusses a brief history of Pat, his wrongdoings and related action, and the response by the related law enforcement agencies.

Henry Cheeseman defines statute of frauds as, “a state statute that requires certain types of contracts to be in writing” (p. 1309). By requiring certain types of contracts in writing it will decrease the amount of issues that can arise during the execution of the contract such as mistakes and fraudulent misrepresentation. It also makes certain the terms of the contact are not forgotten or misunderstood. If a mistake or some form of fraud was committed during the execution of the contract, it will allow one or both parties to rescind the contract. This essay will discuss whether or not Rudy will be successful at rescinding his contract with Hilary based on the statute of frauds.

Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, and the general public. I searched the Internet to locate a story in the news that depicts an accounting ethical breach. I selected Krispy Kreme. I enjoy their hot donuts and was curious to learn more about how they played with the numbers. For some reason I always want to dig into the trickery behind the manipulation of financial statements.

Combating fraud in the private sector is a difficult task. Trying to combat fraud in the public sector is daunting. In 1999 15.7% of the American workforce were employed by a government entity (federal, state, and local).[1] Mirroring society, government will have its share of perpetrators. The difference from the private sector is in the scope of the fraud committed, the loss of the public trust, the blaring headlines from news media, and difficulty in making necessary changes to combat the problems.

The company entered into dubious transactions, especially with Doug Mather. This helped contribute to the cash flow problems. The company needs to avoid these transactions in the future.

Apparently, Peregrine had an agreement with the bank that they would collect the receivables from the customers and, subsequently, submit the payments to the bank. Obviously, when the customers did not pay Peregrine, Peregrine either repurchased the receivables or paid back the bank. $70 million of payments were recorded on the income statement as acquisition or investment related expenses. This action resulted in one-time

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud