Although one might wonder if the outcome would have been different if he had stayed on to see them through the difficult period the company had In its future.
The obvious general policies should be created and provided to all individuals of a company. Suggested Solutions to Case Questions 1. The bottom line is to foster a culture of ethical consciousness, thereby ensuring proper conduct of employees at all levels.
In addition, three senior accountants helped the CUFF conceal the fraud. He also used his authority to neutralize various control functions and the internal audit staff. Hire Writer Would I be able to do the same thing? The point is to try to surface to fraud as soon as Case study jamaica water properties and react accordingly to save the company, its employees, its customers and its shareholders.
This type of activity does not help the accounting and finance industry. The JWP internal auditors might misconstrue to some extent the duty of confidentiality that had consequently undermined their professional competence of asserting that such improper accounting practices will eventually lead to the collapse of the firm EMCOR As long as the firm adheres to these rules and requirements, their risk is minimized.
Nevertheless, Andrew was not honest with Solo and I believe hat he was trying to use him to rejuvenate the business to increase revenues to offset the foreseen future outcome that Andrew I think anticipated.
During my courses, I frequently remind students that most corporate executives, accountants, and auditors are honest and ethical. Waiting out a 2 year cycle before ever being the engaging partner of JP is what I would recommend.
One of the most Important ways to maintain a good reputation, both personally and professionally, is to have honesty and integrity. The internal auditors feared being fired and it deterred challenging improper accounting treatments. If Salomon Brothers id not react in time to get Warren Buffet to assist them out of the situation, they would have never survived.
JP would not have had to go though the scandal and embarrassment that followed. Maintaining Auditor independence through the exclusion of those with potential direct and indirect financial interest in the client from working on the audit.
He decided to branch out into other businesses and began offering various contracting and construction revise to local municipalities like installing telephone lines, working on street lighting projects and developing traffic control systems.
It can give the company a higher survival rating of getting through the fraudulent activity. In andthe SEC issued a series of accounting and auditing enforcement Case study jamaica water properties focusing on Ernest Grinding and the three other Senior Accountants involved in the accounting fraud.
An executive summary identifying the company, the fraud, the affected stakeholders, and the ultimate resolution 4.
In so far, these whistle blowers should be rewarded if the results were proven to be true. Before Solo realized that it was intentional, he should have confronted the Chief Financial Officer on the irregularities in the counting that were concerning to him.
Also, the insurance companies were not considered to be third parties under common law. One way to do that is to reduce the risk of personal relationships between the client personnel and members of the audit engagement team.
Provide the following elements in your paper: At this point, Solo realized that the financial data had to be intentionally distorted. To conclude on the measures that can be taken to make it easier for corporate employees who blow the whistle, companies should instill a policy and routine discuss the policy with its employees.
Not so in this case. These were aimed to inflate the price of the company stocks because of overstated earnings that caused them to receive sizable bonuses. The insurance companies and the firm did not realistically have any responsibility to each other. Identify accounting policies currently in effect that are designed to prevent similar problems from occurring again, or, if no policy exists, propose a solution that would prevent a recurrence.
Pressing charges on the bad employees to make examples out of them would assist in deterring fraudulent behavior.Jamaica Water Properties Case Study During a time in our recent history when greed and self promotion was the benchmark that most financial and managerial directors of companies, both public and private, seemed to strive for.
The Jamaica Water Properties study and the actions of David Solo are perfect examples of the rights and wrongs in corporate environments.
It is also the example of how the actions off few can change the lives and futures of so many. Jamaica Water Properties–Key Facts billsimas.comDavid Sokol accepted an offer to become the COO of JWP, Inc., a large, New York-based conglomerate whose impressive earnings and revenue trends were being threatened.
JAMAICA WATER PROPERTIES View Point Time Context January Central Problem The case is about an accounting fraud that involves the Jamaica Water Properties, billsimas.com fraud was characterized by misapplication of purchase method of accounting for acquisitions, recording fictitious assets.
Jamaica Water Properties Inc. is a transnational technical services firm that specializes in the areas of systems engineering, facilities management, information systems, and environmental management systems.
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