This week’s homework assignment is an analysis of a news article about a bankruptcy fraud, workers’ compensation fraud or a fraud that involved bribery. The article will be about a fraud that has oc

This week’s homework assignment is an analysis of a news article about a bankruptcy fraud, workers’ compensation fraud or a fraud that involved bribery. The article will be about a fraud that has oc
Submit your assignment to the corresponding folder under the Assignments tab by the respective due date. The required format for each assignment is as follows: Submit your paper in Microsoft Word ONLY. Font: Arial 12 point Spacing: single space the questions, double space your answers with 0 point before and after, no seriation Margins: Normal (1 inch) Indent the first line of each new paragraph Copy the assignment questions (only the questions – not the case or problem) into your assignment and place them in Bold font (only the questions will be bolded – not your responses). Please answer one question at a time (question, answer, question, answer, etc.) For example: Question? Response. Question? Response. Question? Response. Total number of pages should be no less than 3 FULL pages. Do NOT include a title page. Do not include any titles or headings in the body of your paper (just the questions and your responses). Answers to the questions will be written in essay format rather than bullet point format Include a reference list and in-text citations for research used in your assignments. Also, direct quotes must be placed in quotation marks regardless of their length. This would include phrases (even just three words) on up. Research should make up 20% or less of the assignment. Please name your file as follows: First Name Last Name Homework #X  For example, if I were naming my file for the homework for week 4, I would name the file: Sheila Vagle Homework 4
This week’s homework assignment is an analysis of a news article about a bankruptcy fraud, workers’ compensation fraud or a fraud that involved bribery. The article will be about a fraud that has oc
11/20/2017 General Cable paying $82.3 million to settle accounting and bribery violations | Accounting T oday https://www.accountingtoday .com/news/general-cable-paying-823-million-to-settle-accounting-and-bribery-violations 1/5 Gen era l C ab le p ayin g $ 82.3 m illio n t o s e ttle a cco un tin g a nd b rib ery v io la tio ns By M ichael C ohn Published December 29 20 16, 1∶0 5pm ES T More in Accounting , Accounting f raud , Int ernal contr ols , International accounting , SEC , Do J Gener al Cable C orporation, a K entucky -based wir e and cable mak er, is paying $6 .5 million in penalt ies to settle account ing violations wi th the Securi ties and Ex change Commission, on t op of over $7 5 million t o resolv e allegat ions by the SE C and the Justice Department that the compan y violated the F oreign C orrupt Practices A ct. Gener al Cable ’s overs eas subsidiaries made impr oper payments to officials f rom f oreign go vernments f or 12 years to get business in Angola, Bangladesh, China, E gypt, Indonesia and Thailand, accor ding to the SE C. The H ighland Heights, K y.- bas ed compan y’s weak int ernal contr ols also failed t o detect impr oper invent ory account ing at its Brazilian subsidiary , leading GCC to materially misst ate i ts financial st atements f rom 200 8 until the s econd quart er of 2012. In Oct ober 200 7, a ft er acquiring Phelps Dodge Int ernational C orp., GCC cr eated the R OW r eport ing segment, whos e management w as based in Dor al, Fla. GCC Br azil, as part o f ROW’s L atin America oper ations, w as one o f the largest and most significant oper ations that w ere r eport ed in R OW’s financial st atements . During that s ame period, GCC Br azil had two manufacturing f acilities . From at least 200 8 until mid- 2012, GCC Br azil materially underst ated the cost o f sales and overst ated i ts copper in vent ory balances on i ts books and records, which w ere cons olidated into GCC’s financial st atements . The invent ory o verst atement, leading t o material financial r eporting err ors, came f rom bo th missing in vent ory and account ing errors wi thin GCC Br azil’s ent erpris e resour ce planning s yst em and i ts implement ation.  Print  Email Reprint s  Share  The Lat est (1/5)  Login R egist er 11/20/2017 General Cable paying $82.3 million to settle accounting and bribery violations | Accounting T oday https://www.accountingtoday .com/news/general-cable-paying-823-million-to-settle-accounting-and-bribery-violations 2/5 In covering up the missing in vent ory, some o f the compan y’s cost account ing personnel, who contr olled entries in GCC Br azil’s gener al ledger and als o controlled the account ing for in vent ory, manipulat ed the ERP syst em t o reflect in vent ory that did no t in fact e xist. After perf orming an int ernal invest igat ion, GCC f ound the in vent ory account ing errors at GCC Br azil were mat erial and w ould require a restatement o f some pr eviousl y issued financial st atements . For the y ears ended Dec. 31, 20 11, 2010, 2009 , and 200 8, and f or the thr ee months ended Mar ch 30, 20 12 and six months ended June 29 , 2012, the compan y understated cost o f sales b y $17.9 million, $8 .3 million, $5 .6 million, $7 .1 million, $2. 7 million and $6 .2 million, respectivel y. As o f Dec. 31, 20 11, 2010, 2009 and 200 8, Mar ch 30, 20 12 and June 29 , 2012 in vent ory balances w ere o verst ated b y $40.0 million, $27 .0 million, $17 .4 million, $8 .7 million, $4 3.7 million, and $4 3.5 million, r espectivel y. On t op o f that, thanks t o accounting errors at one o f the Brazilian f acilities that occurr ed befor e GCC’s acquisi tion o f PDIC in 2007, GCC als o overst ated in vent ory in i ts allocat ion of the pur chase price among ass ets acquired, result ing in an underst atement o f goodwill . The underst ated goodwill and o verst ated in vent ory ass ociated wi th the acquisi tion o f PDIC in the fourth quart er of 200 7 was $3 .4 million. The in vent ory account ing errors at GCC Br azil caused GCC t o overst ate i ts net income av ailable t o common shar eholders by 21.6 per cent, 11.3 per cent and 29.8 percent f or annual periods ended Dec. 31, 20 11, 2010, and 2009 , and 8.8 percent and 13 .8 percent f or quart erly periods ended June 3 0 and March 31, 2012, respect ivel y. “Gener al Cable oper ated globall y without the e ffect ive compliance pr ograms and int ernal controls necessary to proact ivel y addr ess corrup tion risks and account ing errors,” said SE C Enfor cement Division act ing director S tephanie A vakian in a st at ement . Whit e P ap er R eve n ue r e co g nit io n c o m ple x it y s im plif ie d If y ou plan t o try and account f or revenue r ecogni tion (R evR ec) under the ne w accounting standar ds ASC … PAR TNER INSIGHTS SPONSOR C ONTENT FROM: Account ing November 1 GCC ackno wledged Thurs day that its resolut ion wi th the SE C encompass es both the F CPA issues and the s eparate account ing and dis closure issues that w ere the subject o f its pr evious financial r estatements . General Cable will dis gorge profits o f around $5 1.2 million and pay pr e-judgment interest o f appr oximat ely $4 .1 million in connect ion with the F oreign Corrup t Practices A ct violat ion, and pay a civil penalty in connect ion with the r estatement -relat ed matt ers of $6.5 million. As part o f the DOJ resolut ion, the compan y will also pay a penalty o f approximat ely $20 .5 million. It has ent ered int o a non- pros ecut ion agr eement wi th the DOJ, which will be in e ffect f or thr ee years . No criminal char ges will be brought against General Cable , as long as i t complies wi th its obligat ions under the agr eement. To s atisf y i ts financial obligat ions, General Cable will r emit a t otal o f appr oximat ely $82.3 million t o the DOJ and SEC. “W e ar e pleas ed to hav e reached an agr eement with the DOJ and SEC regar ding thes e matters,” said Gener al Cable president and CE O Michael T . McDonnell in a st atement . “Gener al Cable is commi tted t o conduct ing our business ethicall y and with the utmost int egrity, and o ver the past tw o years, w e have invest ed significant t ime and resour ces t o implement a world-class compliance pr ogram. A t the s ame time, we hav e transf ormed our business str ategy under an ent irel y r efr eshed 11/20/2017 General Cable paying $82.3 million to settle accounting and bribery violations | Accounting T oday https://www.accountingtoday .com/news/general-cable-paying-823-million-to-settle-accounting-and-bribery-violations 3/5 Comment s (1) Login or Regist er Post ed B y topbeancount er Friday , December 3 0 2016 at 12∶19 PM So, w ere thos e clever cost account ants promoted? Didn’t s ee any ment ion of suing the audi ting firm. That must be a first! Spons or Links Get Out of These Big-Name St ocks Befor e It ’s Too Lat e. WEISS RA TINGS $500 ,000 in T erm Life Cover age St art ing at $16/ month AIG DIRECT R ack Up 12%- 15% A ver age Gains a Year wi th “Plan Z” In vest ing AAII strategic leadership t eam committed t o maint aining a str ong performance and compliance cultur e. W e ar e a diff erent and bett er compan y today as a r esult of these actions.” Mic h a el C ohn M ichael C ohn, editor-in-chie f of A ccount ingToday .com, has been co vering business and t echnology for a variety o f publicat ions since 198 5.  Mor e from this A uthor Inspector gener al finds pr oblems wi th electronic filing IDs Senat e tax plan w ould increase taxes on 29% o f taxpay ers by 2027: r eport Account ants rank high f or return on equi ty 11/20/2017 General Cable paying $82.3 million to settle accounting and bribery violations | Accounting T oday https://www.accountingtoday .com/news/general-cable-paying-823-million-to-settle-accounting-and-bribery-violations 4/5 Get AT in your inbo x Email Address Subs cribe Regist er Web S em in a r Th e a cco un tin g p ro fe ssio n: T h e y e a r a hea d December 19 20 17 2∶00PM EST SPONSORED BY SAGE Mor e in Accounting , M&A Bas ed on e xtensiv e resear ch wi th the A ccounting Today audience , this session will e xplore firms ’ plans f or 2018, from hiring and t echnology spending, t o growth str ategies, po tent ial M&A , new service o fferings and mor e. 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