Nike And Sweet Shop

Topics: Big Four auditors, Ernst & Young, PricewaterhouseCoopers Pages: 3 (792 words) Published: April 15, 2015
 NIKE INC AND SWEET SHOP

Act The el Expense Billing Controversy and False Claims Act
PricewaterhouseCoopers LLP (PwC), a major accounting firm, was engaged in unethical billing practices that generated millions of dollars in additional revenue to the company. PwC was charging its clients the full price of airline tickets and other travel expenses, such as hotel rooms and car rentals, while it was actually expending only a small percentage of the full amount billed to its clients due to applied rebates and discounts it received under travel agencies and airline contracts and negotiations. Therefore, the company was “overcharging… clients and pocketing the difference without revealing the practice” (AccountingWeb). However, since Neal A. Roberts, a PwC employee, discovered his employer’s travel billing practices, PwC found itself in a very difficult situation.

Mr. Roberts wasn’t in agreement with his company’s billing method and made several attempts to address the problem while working for his firm without much success. He reached out to the company’s ethics department and to an in-house PwC lawyer, but only managed to have the company’s policy revised, not corrected. A group of people (mostly the company’s partners) decided that under the new policy, PwC would have to disclose most of the discounts to its clients but still keep 8 percent of the rebates as a “cover our costs” fee while retaining the “millions… collected previously on the earlier rebates” (Carroll and Buchholtz 630). Despite these policy changes, Neil A. Roberts remained dissatisfied and decided (Carroll and Buchholtz 630). In December 2003, Mr. Roberts won the False Claims lawsuit

According to this topic the Wallace and pekel involves ten steps in the process .In this topic we discuss eight steps which include: 1) Identify the key facts
2) Analyse major stakeholders
3) Identify underlying driving forces
4) Identify operating values...
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