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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 44: Satyam Computer Services (India, 2009)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in Asian Companies 250 Case 44: Satyam Computer Services (India, 2009) Before he fell from grace, Ramalinga Raju was hailed… …based). But in January 2009, Raju had to ad- mit to the largest corporate fraud in Indian history. In a letter to Satyam’s board of directors, he… …scan- dal was quickly labelled as “India’s Enron”. “This is the saddest say for investors,” said one market analyst. “The fraud has badly shaken their… …Accounting Fraud in Asian Companies 251 stand by the company in the hour of crisis. “I am now prepared to subject myself to the laws of the land and… …face consequences thereof.” News of the fraud sent jitters through the Indian stock market. Shares in Satyam fell more than 70%, and the “Sensex”… …capital of Bombay expressed bafflement at how the fraud was not exposed earlier. Whereas Enron and other accounting frauds relied on dizzying arrays of… …off-balance-sheet partnerships and complicated circular trades with willing outside institutions to deceive investors, the Satyam fraud seemed to be absurdly simple… …earnings. Accounting Fraud in Asian Companies 252 However, there is usually little documentation associated with the number, so it is easy to… …letter to say that Sat- yam’s directors and senior executives had no knowledge of the fraud. But if there is a final lesson to be learned of accounting… …. In April 2009, a 77-page report filed by the Central Bureau of Investigation (India’s top investigation agency) detailed the scope of the Satyam fraud…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 7: Waste Management (1997)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in U.S. Companies 55 Case 7: Waste Management (1997) The Waste Management case provides an anatomy of an accounting… …portrays an accounting fraud perpetrated by the highest-ranking officers at WMI. As the scheme unravelled in 1997, the news sent WMI’s stock value tumbling… …that the auditors played a central role in allowing the fraud to continue. Year after year, Arthur Andersen complained about the efforts to inflate… …earnings, but still approved the company’s financial statements when their objections were effectively ignored. Unlike the auditors in other fraud cases… …client too hard. Accounting Fraud in U.S. Companies 56 For example, in its 1993 audit, Andersen quantified misstatements of USD 128 mil- lion… …Charge of Client Service” for Accounting Fraud in U.S. Companies 57 Andersen’s Chicago office and served as marketing director. In this position… …. Accounting Fraud in U.S. Companies 58 “Our complaint describes one of the most egregious accounting frauds we have seen,” said Thomas C. Newkirk… …management to falsify the financial statements by plugging in the additional income needed to achieve the desired earnings for each Accounting Fraud in… …. The scheme was orchestrated and implemented by WMI’s most senior officers. The driving force behind the fraud was Dean L. Buntrock, WMI’s founder… …, Koenig, Hau and Rooney profited handsomely from the fraud, receiving performance-based bonuses based on the company’s inflated earnings, retaining their…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 19: Adelphia Communications (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in U.S. Companies 126 Case 19: Adelphia Communications (2002) The Adelphia case ranks among the biggest corporate fraud… …, Adelphia filed for Chapter 11 bankruptcy protection. Accounting Fraud in U.S. Companies 127 On July 24, 2002, federal prosecutors arrested… …. Accounting Fraud in U.S. Companies 128 Adelphia deliberately shifted liabilities onto the books of unconsolidated Rigas en- tities. The company created a… …capable” a greater percentage of its cable plant that in fact had been upgraded. Accounting Fraud in U.S. Companies 129 Third, Adelphia… …While most of the fraud took its form in hidden debt and misrepresentations con- cerning operational performance, the Adelphia case is especially notable… …: Accounting Fraud in U.S. Companies 130 – The Rigases created a special accounting system to mask their personal transactions, using the company’s… …disclosed to investors. Accounting Fraud in U.S. Companies 131 The SEC investigation found that chairman John Rigas and his sons had… …sentenced to 20 years in prison. The sentence was among the harshest handed down in any U.S. court for accounting fraud. The Rigas’s cases were low-hanging… …715 million. The funds were to be used to compensate Adelphia security holders who lost money as a result of the fraud. Adelphia and the Rigases also… …resolved civil fraud charges as part of a joint settlement with the SEC. In July 2006, the company sold substantially all of its assets, including the…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 32: Comroad (Germany, 2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 190 Case 32: Comroad (Germany, 2002) For audacity and scale, few cases of accounting fraud can match… …: Accounting Fraud in European Companies 191 (1) a lack of clarity about the existence of a Hong Kong company named “VT Elec- tronics Ltd.”, and (2) a… …, in the wake of that firm’s role in the Enron fraud in the United States. KPMG’s merger talks with Andersen broke down as the Comroad scandal… …was removed, and in November 2002, CEO Bodo Schnabel was ultimately jailed for seven years for criminal fraud and market manipulation. The Wall Street… …total revenues and backed them up with the name of a Accounting Fraud in European Companies 192 non-existing Asian customer. By 2000, roughly 97%… …. Still, the courts rejected most of the civil claims against Mr. Schnabel. KPMG said that it was victim of the fraud – and indeed, some observers… …thought that the “we were fooled, too” defense could be valid. “Comroad is not an account- ing issue. This is fraud,” said Hans-Georg Bruns, a member of… …series of accountings scandals in Germany that have badly damaged investors’ confidence in Accounting Fraud in European Companies 193 financial…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 21: HealthSouth (2003)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in U.S. Companies 138 Case 21: HealthSouth (2003) In 2002, WorldCom, Tyco, Adelphia and several other U.S. companies joined… …2003, the SEC charged HealthSouth and its founder, chairman and CEO, Richard M. Scrushy, with accounting fraud. SEC director of enforcement Stephen… …revenues to derive net Accounting Fraud in U.S. Companies 139 revenues, which were disclosed on the periodic reports filed with the SEC. Because… …PricewaterhouseCoopers found additional fraud and concluded that HealthSouth’s cumulative earnings were overstated by at least USD 3.8 billion. PwC’s post-mortem report… …forensic experts (brought in by HealthSouth’s law firm to unravel the scheme) described the recipe for the fraud as follows: take legitimate numbers… …“Transmittal 1753”) for reduced future earnings. Transmittal 1753 Accounting Fraud in U.S. Companies 140 required certain healthcare providers to bill… …, the fraud’s impact was greater than USD 4 billion. But the fraud didn’t end there. In late 2003, federal law enforcement officials began to… …investigate Medicare fraud at HealthSouth, after a Texas jury had awarded USD 1.5 million in damages to the former medical director of a Houston hospital, Dr… …belonged in a psychiatric facility, not a rehab facility, but we had a bed available and we were encouraged to take them.” “In this sea of fraud, is it… …they exercise their fiduciary duty and responsibility to sharehold- ers?” However, the auditors, Ernst & Young, disavowed knowledge of the fraud…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 1: McKesson & Robbins (1938)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …25 Chapter 2: Cases of Accounting Fraud 2.1 Accounting Fraud in U.S. Companies Case 1: McKesson & Robbins (1938) “Like a torrent of… …accounting scandals. The preceding paragraph was published in February 1939 in the wake of the infa- mous accounting fraud at McKesson & Robbins, Inc. Unknown… …December 31, 1937. The mastermind of the fraud was Philip Musica. Born to poor Italian immigrants, he was raised in poverty in the streets of… …society. Philip Musica’s criminal career began early. By his 30th birthday, he had been con- victed of fraud twice. The first conviction was for… …bootleg- Accounting Fraud in U.S. Companies 26 gers who bought huge quantities of the company’s products and distilled out the alcohol to make booze… …thing. The fraud centred on the company’s crude drug division: unlike the rest of the company, only Musica and his three younger brothers had access to… …among themselves with Philip Musica, the oldest brother, getting the largest share. The fraud was not discovered until late 1938 when McKesson &… …obtained copies Accounting Fraud in U.S. Companies 27 of the Dunn & Bradstreet credit reports that had been used to satisfy McKesson & Robbins’… …circumstances of the McKesson & Robbins case gave the fraud much publicity. Hollywood set to work on a Musica movie. However, the scandal also led to major… …corporate governance and auditing reforms. Within months of the discov- ery of the fraud, a special committee of the AICPA recommended significant changes to…

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• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 40: Kanebo (Japan, 2005)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in Asian Companies 236 Case 40: Kanebo (Japan, 2005) By the late 1990s, Kanebo Ltd. ranked among Japan’s largest public… …crisis” in the United States. Japan’s business press quickly referred to the Kanebo fraud as “Japan’s Enron”. In March 2006, Takashi Hoashi pleaded… …learned of this scheme from reading the published reports of the Enron fraud.) When the executives were no longer able to sustain the scam in 2005, they… …announced that an internal inquiry had found “instances of accounting fraud” in the past. Finally, they admitted overstating oper- ating results by… …charged in connection with the Kanebo fraud admitted helping the company to hide losses. They had pointed out irregularities, but no Accounting… …Fraud in Asian Companies 237 demand had been made to have Kanebo’s statements corrected, resulting in an audit approval. According to the… …company’s poor financial health (the three defendants never admitted as much, though). During trial, the auditors testified that shortly before the fraud… …prevent the fraud was a consequence of “serious deficiencies” in its internal controls. As a result of inspect- ing Chuo Aoyama, the firm-wide management… …. Accounting Fraud in Asian Companies 238 As well as causing an exodus of audit clients, the punishment of Chuo Aoyama also helped to fuel extreme… …that it was also Accounting Fraud in Asian Companies 239 “unprecedentedly cleverly devised”. Despite these remarks, he handed suspended…

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• eBook-Kapitel aus dem Buch Digitale Datenanalyse, Interne Revision und Wirtschaftsprüfung

  Digitale Analyse von Finanzdaten

  Thomas Keller

  …, um Risiken und Fraud effektiv aufzude- cken. Doch die aktuelle Diskussion zur Mitarbeiterüberwachung zeigt auch, wie sensibel die Unternehmen bei dem…
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 38: Daewoo Group (South Korea, 1999)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …226 2.3 Accounting Fraud in Asian Companies Case 38: Daewoo Group (South Korea, 1999) At the end of 1999, the Daewoo Group, one of… …the largest conglomerates in the world, collapsed in a spectacular fashion. The accounting fraud that was uncovered was described as one of the… …. The lending Accounting Fraud in Asian Companies 227 banks maintained rather lax standards, focusing on revenues and sales volume, instead… …“rags-to-riches” founder of Daewoo Group ended in a big corporate fraud scandal. Although the government prosecutor’s office released only scant details, it… …accounting fraud in a variety of ways. However, a substan- tial degree of the fraud occurred through asset swaps among Daewoo subsidiaries. One subsidiary… …illegitimately propped up Daewoo’s failing companies. Accounting Fraud in Asian Companies 228 Cover-ups of failed ventures When, e.g., Daewoo… …Motor attempted to cover up its failed USD 200 million investment in a car plant in Ukraine, the fraud bordered on the farcical. Daewoo Motor (the… …accounting fraud. Daewoo companies with questionable credit status would issue new stock that the overseas institutions would acquire, technically as equity… …for personal enrichment by Kim and senior Daewoo managers. Accounting Fraud in Asian Companies 229 Daewoo was not an isolated incident; a… …number of Korean firms found themselves in the spotlight over accounting fraud and embezzlement at the time of the Asian financial turmoil. In Korea, a…

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• eJournal-Artikel aus "Risk, Fraud & Compliance" Ausgabe 2/2010

  GRC-Report: Compliance in der Energiewirtschaft

  Compliance-Pflicht und Compliance- ­Organisation im Spiegel einer empirischen Bestandsaufnahme des aktuellen Compliance-Niveaus in der Energiewirtschaft
  

  Christian Plate

  …Risk & Fraud Management angefertigt wurde. Der Artikel zeigt das aktuelle Compliance-Niveau deutscher Energieversorgungsunternehmen auf. Zunächst… …Abschluss Thema Fraud. einer Die rechtlichen Adres- Vertragsprüfung setzung von organisatorischen oder werden nach und dem Mehrgesaten der Schulungen sind…