Fraud Examination Executive Summary: Miniscribe By Samantha Altieri‚ Zac Biesiada‚ Dan Cohen‚ and Tim Foley BACC 552 Miniscribe was a computer disk drive manufacturing company that was founded in 1981 by Terry Johnson. The company was initially run out of basement of Mr. Johnson’s home in Longmont‚ Colorado. Shortly after becoming a publicly traded company in 1983‚ Miniscribe began to experience financial losses. (United States v. Patrick J. Schleibaum) In 1985 the venture capital firm
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Sales at Miniscribe Corp. grew from just over $5 million in 1982 to approximately $114 million in its fiscal year ended in 1985. The 1986 and 1987 annual reports talked enthusiastically about new manufacturing initiatives. MiniScribe’s success continued well into the first half of 1988‚ when the company seemed to be the only disk drive manufacturer in the industry to buck another slump. The improved financial results of the company were mostly fabricated‚ including fictitious shipments to boost
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accounting control of MiniScribe‚ specifically the reasons for its ineffectiveness in preventing fraudulent financial reports. Internal accounting control is crucial to internal control in a company. Accounting control is the methods and procedures for authorizing transactions‚ safeguarding assets and ensuring the accuracy of the financial records. I think the most important reasons of the totally failure of internal control to prevent fraudulent financial reports in MiniScribe Corporation was the
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From my point of view‚ accounting practices that MINISCRIBE used to fabricate the number in the financial statements can be divided into two aspects. One is about how to increase the NET INCOME and the other is about how to decrease EXPENSE. a) NET INCOME We know from the news that Mr. Wiles’s unrealistic sales targets and abusive management style created a pressure cooker that drove managers to cook the books or perish. And look they did -- booking shipments as sales‚ manipulating reserves and
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A CASE STUDY ON MINISCRIBE CORPORATION July 6‚ 2012 EXECUTIVE SUMMARY The case subject revolves around MiniScribe‚ a manufacturer of disk storage products that is under the watch list for rumors directed to the firm’s problems with cash flow and inventory. The objective of the report is to come up with a BUY OR DON’T BUY recommendation for Alexander & Ferris using the available financial and qualitative information. The analysis was conducted by deriving additional information from
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Question 1: Construct 1988 Statements of Cash Flow for MiniScribe.（assume that 1988 depreciation expense is $6） Table 1: Statement of Cash Flow of MiniScribe of 1988 and 1987 1988 1987 Statement of Cash Flows Cash Flows from Operating Activities Net Income 26.00 31.00 Non-Cash Adjustments 6.00 11.00 Changes in Assets and Liabilitites Related to Operations Change in Accounts Receivable (116.00) (17.00) Change in Inventory (56.00) (39.00) Change in Account Payable 143
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A Case Study on MiniScribe Corporation for BA 219 - Corporate Financial Reporting Submitted to: Dr. Helen S. Valderrama by ARELLANO‚ Alyssa Loren ASADON‚ Rovin Vincent BLANCO‚ Melissa CHU‚ Goodwealth DE GUZMAN‚ Cla PRELLIGERA‚ Chriss Jan July 9‚ 2013 Master in Business Administration University of the Philippines Diliman‚ Quezon City EXECUTIVE SUMMARY In October 1988‚ Paula Perry‚ a research analyst for the brokerage firm Alexander and Ferris‚ was tasked to analyse
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Dubstep Explained Dear Granny‚ I am writing you this letter to answer in detail a question you asked me over the Christmas break. My dad says your radio is fixed now but if you’re still confused by what the sounds it was producing were‚ and their purpose‚ then read on. The rhythmic beeps and growls being produced by you radio were a genre of modern music‚ called “dubstep”. It all started in South London in the 1990’s‚ when the working class youth began experimenting with combinations of house
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was heard stating that if he was out of the picture‚ the team would fail. Hill’s micromanaging style shows a need to have control over every detail of the business. This type of management is a huge red flag pointing towards financial statement fraud (ACFE‚ 2012‚ p.1.238).One of the employees‚ Sam MacCarty‚ pointed out that though Ackers is the President of the team‚ Hill is seen as the one in control. This could lead to a possible resentment of Ackers and the team as a whole. Hill is pulling all
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Fraud Fraud is listed by the 2003 UK Threat Assessment issued by the National Criminal Intelligence Service as one of the seven most significant threats facing the world1. What is a Fraud? A fraud is when one party deceives or takes unfair advantage of another. A fraud includes any act‚ omission‚ or concealment‚ involving a breach of legal or equitable duty or trust‚ which results in disadvantage or injury to another. In fact‚ in a broad strokes definition‚ fraud is a deliberate misrepresentation which
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