Audit Essay
Highlander International, Inc. is a public corporation, which lists its stock on NYSE. It is known for design, manufacturing, and distribution of toys and sporting goods. Over the past several years, Highlander has been experiencing increasing sales and recently posted revenues of $10.7 billion. Its primary US customers include ToysRUs, Target, and Walmart. Since 2000, it has been audited by E&Y.
Highlander International, Inc. hired Max Million as the company started to reach $25 in sales and broadened its strategy to grow internationally. To keep up with the growth, the company adopted the latest enterprise resource system to capture all business activities since there were many manufacturing and distribution centers around the globe.
In October 2011, Max Million, former CEO of Highlander International, Inc. was convicted of charges involving grand larceny, conspiracy, securities fraud, and falsifying business records. He was sentenced to thirteen years in prison for his crimes against the company. Prosecutors stated that Mr. Million stole more than $225 million from the company by falsely raising his salary for performance bonuses. Max Million, being a very generous man, also gave bonuses totaling $50 million to his three favorite senior vice presidents. Mr. Million also borrowed money and later forgave himself for the loans. Max Million claimed that his bonuses and the forgiven loans have been approved verbally by Mrs. Currency, who is a board member. She has since died from a major yacht accident near the Isle of Capri so it was not possible to verify Max’s statements. Many outsiders were upset and wondered if he was simply guilty of greed at the expense of
Highlander International, Inc. hired Max Million as the company started to reach $25 in sales and broadened its strategy to grow internationally. To keep up with the growth, the company adopted the latest enterprise resource system to capture all business activities since there were many manufacturing and distribution centers around the globe.
In October 2011, Max Million, former CEO of Highlander International, Inc. was convicted of charges involving grand larceny, conspiracy, securities fraud, and falsifying business records. He was sentenced to thirteen years in prison for his crimes against the company. Prosecutors stated that Mr. Million stole more than $225 million from the company by falsely raising his salary for performance bonuses. Max Million, being a very generous man, also gave bonuses totaling $50 million to his three favorite senior vice presidents. Mr. Million also borrowed money and later forgave himself for the loans. Max Million claimed that his bonuses and the forgiven loans have been approved verbally by Mrs. Currency, who is a board member. She has since died from a major yacht accident near the Isle of Capri so it was not possible to verify Max’s statements. Many outsiders were upset and wondered if he was simply guilty of greed at the expense of