Report on Financial Statement Fraud Scheme - 825 Words

Report on Financial Statement Fraud Scheme (Other (Not Listed) Sample) Content: Report on Financial Statement Fraud SchemeStudent:Professor:Course title:Date:MEMORANDUM From: Anna MarieTo: Joy AdamsonDate: 28/11/2014Subject: Report on Financial Statement Fraud SchemeDear Madam,This memorandum is written for the purpose of communicating the examinations of the findings explained in the case that involve Eddie Antar, a fraudster who engaged in a financial statement fraud scheme for several years before eventually being found and prosecuted for his crime. Summary of matter under investigationsThe matter that is under investigation involves Eddie Antar who inflated stock price. He had an electronics empire, Crazy Eddies Inc. By the time Antars Crazy Eddies electronics company collapsed, Antar and his family members had distinguished themselves with a fraud of huge proportions, having garnered over $120 million. Eddie Antar over-reported his earnings and this increases the stock price of his company. In essence, he skimmed money to beat the taxman, an d then drew out money as he needed them for the purpose of boosting sales figures.The financial statement fraud schemes that Eddie Antar engaged include (i) overstated or fictitious revenue: this includes fictitious sales supported by phony invoices to genuine companies, invoices to fake companies, and no supporting invoices (Dutta, 2013). (ii) Skimming schemes: skimming is understood as the process through which funds is removed from the company before the money enters the entities accounting systems. It is an off-book scheme given that the receiving of the funds is never reported in any way to the business organization (Camay, 2009). (iii) Fraudulent inflation of inventory: this entails recording fictitious assets and overstating inventories (Association of Certified Fraud Examiners, 2014). Scope of examinationExamination of overstated/fictitious revenues and skimmingIt is pointed out in the case that for every few dollars to Crazy Eddies, Eddie Antar and his family members too k a dollar for themselves. This money was then secreted away into bank accounts at the Bank of Leumi in Israel. In essence, Eddie Antar himself smuggled some of the cash out of the United States when he strapped stacks of substantial bills of cash on his body. This skimming of money actually meant tax-free profits. When Crazy Eddies entered the stock market, Eddie Antar anticipated the shares of the Initial Public Offering by secretly easing money from Bank Leumi of Israel into the companys operation. The problem with Crazy Eddies is that after the firm had built up the books, they established a pattern of double-digit growth that they actually needed to sustain. Since they wanted the companys stock to rise, they came up with a 7-point plan. There was skimmed money waiting overseas which was brought back into the United States and then disguised as sales. Eddie and his family members illegally boosted retail sales by $2.2 million and income by $5.5 million and cashed in their stock for a windfall of $42.2 million. In the final year before the boom busted, they inflated retail sales by $18 million and income by $37.5 million.Examination of fraudulent inflation of inventory Eddie Antar and his family members also knew how to inflate inventory significantly. It is worth mentioning that debit memos were prepared that showed considerable quantities of VCRs and stereos as returned to manufacturer. Crazy Eddies Inc. was acclaimed for the wholesale cost due back from the manufacturer. Nonetheless, the machines were kept at the warehouse to be counted as inventory. Additionally, in a variation of the inventory scam, at least one wholesaler agreed to transport to Crazy Eddie truckloads of goods, putting off the billing to a later date. In this way, Crazy Eddies had substantial inventory volume. Eddie Antar also shared inventory amongst his many stores. After auditors had finished to count the holdings of a warehouse and left for the day, employees tossed the goods into trucks and transported the inventory overnight to an early morning load-in at another store. The moment the auditors got at that particular warehouse, they actually found a packed storeroom that is ready to be counted. Another instance of fraudulent inventory fraud was when Crazy Eddies broke into the records of the auditors and boosted the inventor...

Bryan A. Stevenson - Free Essay Example

A hero can be described as a person who is courageous enough to develop solutions, by demonstrating ingenuity and bravery when faced with challenges that at a time forces them to sacrifice their concerns for a greater cause. A hero helps other people and save them from danger, oppression, and/or misfortunes. It is during problems that heroism is manifested in individuals. Heroes are driven to act by something that is in them that push them even when they face challenges. My hero is Bryan A. Stevenson who is an American social justice activist and lawyer. He is based in Montgomery, Alabama and has helped various low-income families and minorities acquire justice. Bryan Stevenson is compassionate, courageous, knowledgeable, and creative. Bryan Stevenson is compassionate since he usually helps poor people and the minority in their times of trouble. Stevenson has defended many prisoners who faced the death penalty thus saving many lives. He was courageous enough to help in the achieve ment of court decisions that prohibit sentencing children to the death penalty. In 1994, the Congress eliminated funding for the defense of poor people who faced the death penalty. Lack of funding prevented the poor and especially people from the minority group from getting justice in their trials. Many people were sentenced to death due to lack of adequate defense. Bryan Stevenson formed the Equal Justice Initiative (EJI) and funded it solely. He assured every single person in Alabama of sufficient defense whenever they were faced with the death penalty. He formed the initiative amidst opposition from leaders from majority races. Bryan Stevenson is knowledgeable. He attended Cape Henlopen High School where he performed very well and was the students leader until 1977. He got straight As and won a scholarship to take law at the prestigious Harvard Law School. He earned a Masters degree at the John F. Kennedy School of Government. Due to his intelligent, he was appointed as the le ader of the Alabama Operation which was an organization that defends people facing death-penalty. He is the backbone of the Roper v. Simmons (2005) case which prohibited death penalty conviction to people under the age of 18. Bryan Stevenson is creative since he has developed various ideas that prevent wrongful convictions and protect the rights of the minority and poor. He established the museum known as From Enslavement to Mass Incarceration, which will show the relationship between post-Civil War and high rates of incarceration of the minority groups in the United States. Bryan has also written a book entitled Just Mercy: A Story of Justice and Redemption which advocated for social justice and transforms the justice system. He has also founded various social groups that unite the victims and the perpetrators hence enhancing tranquility and cohesion. Bryan Stevenson has inspired me to fight for social justice and help those in need. He used his professional skills to transform the society. Thus, I am determined to use my skills and education to leave a legacy in the society. Bryan has helped people regardless of their racial background. Similarly, I am determined to unite people and serve them equally. I have strived to respect everyone, regardless of their social backgrounds, in the community. To emulate Bryan, I will transform the society by advocating for equality and even distribution of resources and opportunities. In the future, I am determined to become a hero in advocating for justice and equality. Bryan Stevenson will provide a clear guideline that I can follow to achieve my goal.