company had understated its loan repurchase loss reserve for three quarterly reporting periods of 2006 due to “inadvertent oversight.” On April 2‚ 2007‚ New Century filed for bankruptcy in a U.S. federal court. KPMG served New Century’s independent auditor since it inception in 1995. The federal bankruptcy examiner performed extensive investigations of New Century’s quarterly financial statements and
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Q1: Why didn’t Arthur Andersen stand up to WMI management? Arthur Andersen was one of the largest accounting firms in the United States and became the company’s auditor throughout this period. During 1992 to 1996‚ Arthur Andersen and its partners help WMI’s senior officers to manipulate company’s financial report in order to meet the target. They employed a multitude of improper accounting practices to achieve this objective. In my opinion‚ the reason why Arthur Andersen didn’t stand up to WMI
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internship program offered by KPMG Shanghai. During the two-month program‚ I took part in a real audit project with a group of auditors after a one-week intensive training. This was the first time for me to work in an international company‚ where I got familiar with the working environment and culture of a leading firm. I learned a lot through the experience. KPMG is one of the four largest international accountancy and professional services companies‚ along with PwC‚ Deloitte and Ernst & Young. First
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1. In your opinion‚ did Vaughn overreact to Walker’s admission that she had been untruthful regarding the CPA exam? If so‚ how would you have dealt with the situation if you had been in Vaughn’s position? Vaughn did not over react to Walker’s untruthfulness regarding the CPA exam. She lied that she had not taken it because she feared that she was going to fail. I believe it is important to be completely honest and have integrity while working in an audit firm. If Walker lied about not taking
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Standard Issues: AICPA The American Institute of Certified Public Accountants has created a code of professional conduct that all certified public accountants must follow. This code of conduct lists the responsibilities CPAs have when working with a company ’s financial information. The AICPA also includes information regarding the integrity‚ objectivity‚ independence and due care that CPAs must use when working in the accounting industry. The AICPA offers an ethics course for accountants to refresh
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KPMG Sued by New Century Trustee Over Subprime Lender’s Demise By Sophia Pearson - April 2‚ 2009 00:36 EDT April 2 (Bloomberg) -- KPMG International‚ which oversees the fourth-largest U.S. accounting firm‚ was sued by the trustee for bankrupt subprime lender New Century Financial Corp. over claims it failed in its role as “gatekeeper.” Negligent audits and reviews by KPMG LLP‚ the U.S. member firm of KPMG International‚ led to New Century’s collapse‚ according to lawsuits filed yesterday
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Ernst & Young Ernst & Young (trading as EY*) is a multinational professional services firm headquartered in London‚ United Kingdom. It was the third largest professional services firm in the world by aggregated revenue in 2012 and is one of the "Big Four" accounting firms which includes Deloitte‚ KPMG‚ and PricewaterhouseCoopers. The organization operates as a network of member firms which are separate legal entities in individual countries. EY is a global leader in assurance‚ tax‚ transactions and advisory
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Case 1.3 Jamaica Water Properties Prepared by Alex Gonzalez for Professor C.E. Reese in partial fulfillment of the requirements for ACC 540 – Fraud Examination School of Business / Graduate Studies St. Thomas University Miami Gardens‚ Fla. Term A7 / Fall‚ 2014 October 24th‚ 2014 Table of Contents Issues 1 Facts 1 Analysis 7 Conclusions/Recommendation 7 References/Bibliography 7 Issues 1. In David Sokol’s position‚ after discovering the suspicious items in JWP’s
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KPMG Scott London: Insider Trading Krystal Johnson 521/MGT - Management October 6‚ 2013 Mr. Kevin Stone KPMG Scott London: Insider Trading Background Scott London was the audit partner at one of the largest accounting firms in the United States‚ KPMG. Between October 2010 and May 2012‚ London gave confidential information regarding several firms to his golfing friend Bryan Shaw‚ who was a jewelry store owner‚ then traded stocks with the information provided. The firms that were compromised included
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unethically by accepting the internship with the St. Louis accounting firm when he intended to accept the outstanding jod offer from the Big Four accounting firm at the completion of that internship? Defend your answer. ANSWER: No‚ the decision made by Arvel Smart can’t be considered as unethical because it was just an offer and though he intends to accept the offer of Big Four‚ he is not bound to accept that offer. In other words‚ it’s really up to him. I think the unethical issue would arise when there
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