Suchergebnisse

• eBook-Kapitel aus dem Buch Global Management Challenges for Internal Auditors

  The Financial Sector: Risks, Controls and Assurance after the Financial Crisis

  Daniel Nelson

  …the US, Euro-area, Japan, and the UK – grew up to USD 4.1 trillion or 7 percent on a total stock of USD 57.7 trillion. How was it possible to fall… …countries being represented by their respec- tive heads of state or government. It had never done that before the financial crisis, when only ministers and… …capital for its operations as would have been the case with a lower credit rating. On September 16, 2008 AIG lost its AA- rating (it had already lost… …internal audit. 4 Lessons for Internal Auditors First of all it has been reported that internal audit did not have sufficient or adequate access to… …area in an entity. Nelson 96 It has also been reported that enterprise risk management (ERM) and the finance complex did not have adequate… …funds we can all assume that those resources will be closely scrutinized, particularly in the public media. I submit as discussed earlier that it is… …of the factors contributing to this financial cri- sis. It would be interesting for internal audit to review whether the organization’s compensation… …policies and model are indeed appropriately tailored to its business model or whether it is a risk in itself.…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 31: Bankgesellschaft Berlin (Germany, 2001)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Accounting Fraud in European Companies 186 Case 31: Bankgesellschaft Berlin (Germany, 2001) It is a spectacular tale of incompetence… …bank insolvency), this time it did not involve any elite private bank, but the most powerful banking house in the German capital. The crisis ex- posed… …. While Berlin’s city-state government owned the majority of BGB’s shares, the new institution was also publicly listed. That made it an unusual hybrid in… …the German banking system. Moreover, the way BGB was structured and managed left it vulnerable to weak controls and conflicts of interest. Its complex… …mix of businesses made it difficult for the supervisory board of the parent institution to maintain control and insist on clear risk reporting from… …Aubis and agreed on the credit line without the usual collat- erals and checks. However, Aubis failed as it saw itself unable to rent out the refur-… …were not just businessmen, but old CDU colleagues who had sat alongside him in parliament for many years. Then it came to light that Landowsky had… …, BGB quickly became one of the leading players in the Euro- pean real estate investment fund market. However, it was buying market share by assuming… …admitted it could not complete its 2000 accounts because of the ongoing investiga- tion and deep uncertainties about the potential risk in the… …property-linked portfolio. When BGB belatedly reported its official figures for 2000 in July 2001, it had to reveal a startling EUR 1.65 billion loss. It also…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 40: Kanebo (Japan, 2005)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …corporations. It had started making cotton in the 19th century and went on to become the number two in Japan’s cosmetic market. Its principal operations… …discovery of a series of accounting frauds in companies in the Japanese IT industry, and the frauds in Japan reminded many observers of the “Enron… …guilty to falsifying Kanebo’s financial statements. He had taken over the company in 1996, and when it became clear that he couldn’t stop the… …order to improve the company’s operating results and to make it appear solvent. Another method was improperly “de-consolidating” certain Kanebo… …those entries. When they pressed the issue, Hoashi argued that Chuo Aoyama had long accepted the company’s accounting practices and said it was pointless… …auditors. The presiding judge said: “The crime significantly eroded the public trust in the auditing system. It is shameful that they have failed to… …market turmoil in its wake. In a statement, PricewaterhouseCoopers said it would assist Chuo Aoyama in its reform efforts but at the same time… …called “Aarata” (meaning “new and fresh” in Japanese) commenced operations. In the subsequent weeks, it acquired dozens of former Chuo Aoyama clients. In… …addition, about one-fourth of the employees left Chuo Aoyama and joined Aarata. (Given the dire lack of qualified auditors in Japan, it would have been… …2007, Misuzu announced that it was disbanding. In the aftermath of the Kanebo audit failure, the FSA began to investigate the audit practices of…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  A Practice Aid for Company Executives: The Ethics Barometer

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …290 Appendix: Practice Aids Appendix I A Practice Aid for Company Executives: The Ethics Barometer It is essential that the board and… …. However, it is advisable to tailor the content of the barometer to the situation in which the organization finds itself. For achieving customization… …honest and reliable: he does as he says and fulfils his responsibilities. A.11 In my immediate working environment, it is sufficiently clear how… …. A.12 It is easy for me to comply with the company’s standards of conduct because there is a strong level of commitment from top management and… …standards of conduct is provided to me when I need it and is clear and easy for me to understand. C.4 The training is effective in guiding my decisions… …first-hand knowledge about misconduct, I would feel comfortable reporting it to my colleagues or my supervisors. C.8 If I observed or had first-hand… …knowledge about misconduct, I would feel comfortable reporting it to the ethics hotline/the compliance department. C.9 As a result of the incident… …fraud awareness sessions is adequate. C.18 The company has established its compliance policy by means of a long- term integrated plan. It regularly… …standards of con- duct, I think it would be because they are trying to help the organization achieve its goals and meet its business targets. D.5 If a… …manager or a colleague does something which is not permitted, some- one in the organization will find out about it. E. Personal Data (optional)…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 43: Sanyo Electric (Japan, 2007)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …Electric Co. struggled with heavy financial losses as it faced a brutally competitive pricing market for many of its products. These products (including… …should have accounted for USD 1.5 billion in subsidiaries’ losses in 2004 but booked only around USD 400 million, thus falsely reporting a profit when it… …was largely in the red. In February 2007, Sanyo admitted that it had been approached by Japan’s Secu- rities and Exchange Surveillance Commission… …(SESC) about its past accounting. Sanyo announced that the SESC was investigating it for allegedly failing to account for valuation losses made on… …the losses were focused on its LCD unit (which it liquidated later on) and its chip making division. Eventually, Sanyo said it might have to… …restate its earnings for the four years between 2000 and 2004. The investigation was a blow to Sanyo at a time when it made great efforts to turn… …temporarily after being implicated in financial statement fraud at Kanebo, the cosmetics firm. It had also been the auditor for Nikko Cordial, which had to… …and her reliance upon a consultancy firm run by her husband. In December 2007, Sanyo admitted that its group figures were wrong since 2000. It… …said it miscalculated earnings from dozens of subsidiary companies to the tune of USD 3.5 billion over six years to March 2006. In March 2004, it had… …falsely reported a profit instead of a loss. Sanyo apologized to investors, saying it would strengthen its management team and internal controls, but…

  Alle Treffer im Inhalt anzeigen
• eBook-Kapitel aus dem Buch Accounting Fraud

  Case 20: AOL Time Warner (2002)

  Prof. Dr. Klaus Henselmann, Dr. Stefan Hofmann

  …entertainment giant headquartered in New York. The implied market value of the merged company was approximately USD 200 billion, making it the then-largest… …started to flatten. It was during this period that AOL engaged in accounting fraud to mask the fact that it was also beginning to experience a rapid… …for goods and services it purchased in exchange for the vendors’ purchases of online advertising in the same amount as the mark-up – “Business… …and services. In the third quarter of 2000, AOL paid PurchasePro USD 2 million for software licenses it neither needed nor intended to use. In… …parties it referred to PurchasePro entered into commercial arrangements with this company. AOL essentially paid third parties to Accounting Fraud in… …from PurchasePro, but falsified documents in order to create the appearance that it had actually referred third-party purchases to PurchasePro. In the… …these memberships as sub- scribers, although it knew that the memberships mostly would not be activated by the employees. The so-called “attach rates” –… …several instances, AOL counted bulk subscribers although it failed to complete the transactions within the respective quarters. In last-minute efforts to… …meet the quarterly targets, AOL shipped non-conforming membership kits to the customers prior to the quarter end – with the understanding that it would… …management of AOL Europe; for example, it caused its own designated directors and steering committee members to act in accordance with AOL’s directions. How-…

  Alle Treffer im Inhalt anzeigen

• Zeitschrift Interne Revision Ausgabe 01 2010

• Zeitschrift Interne Revision Ausgabe 02 2010

• Zeitschrift Interne Revision Ausgabe 03 2010

• Zeitschrift Interne Revision Ausgabe 04 2010