Waste Management Inc. Fraud I. BRIEF HISTORY Waste Management Inc is a company in North America that provides waste and environmental services. This company was founded by Larry Beck in 1894. The company ’s operations also involved managing air and gas‚ environmental and groundwater protection as well as environmental engineering. By 1971‚ the company became more public after the 133 acquisitions and the $82M in revenue that were made and soon became the largest waste hauler in the
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Waste Management Accounting Fraud Case Review the SEC’s case against Waste Management in order to answer the following questions: What were the incentives for committing the fraud? What was the relationship between management and the auditors? Why didn’t the auditors prevent the fraud? What (specifically) accounting methods were used to fraudulently inflate Waste Management’s profits? What accounting methods did they use to try to conceal part of the fraud? What were the financial and social
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Waste Management Fraud Waste Management‚ Inc. today is dedicated to serving our communities by collecting and disposing of garbage and recycling. Over the years they have had to deal with a rise of issues such as environmental and global warming. Waste Management has also tried to reduce its waste collections while turning any valuable resources it can into clean and renewable energy. Waste Management has been around since the late 1800’s‚ and is a holding company that has all its daily operations
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Case 4.4 Waste Management‚ Inc. Question 1 Three conditions are often present when fraud exists. First‚ management or employees have an incentive or are under pressure‚ which provides them a reason to commit the fraud act. Second‚ circumstances exist - for example‚ absent or ineffective internal controls or the ability for management to override controls – that provide an opportunity for the fraud to be perpetrated. Third‚ those involved are able to rationalize the fraud as being consistent with
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Incentives: from the case‚ the SEC staff claimed that the top Waste Management officers’ fraudulent conduct was driven by greed and a desire to retain their corporate positions and status in the business and social communities. Their bonuses‚ retirement benefits and stock options closely correlate with the performance of the company. If the company meets predetermined earnings targets‚ those top managements will earn a lot from profit sharing. Furthermore‚ aside from money‚ those people can maintain
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A Strategic Case Analysis: Waste Management Inc. Respectfully Submitted to: Dr. Jifu Wang By: Cliff Aseltine Danny McRea Tejal Modi Ajay Shukla Sean Sullivan Semiinar iin Strategiic Management Sem nar n Strateg c Management Management 6359 - Sectiion 09106 - Spriing 2006 Management 6359 - Sect on 09106 - Spr ng 2006 Team 2 – Aseltine‚ McRea‚ Modi‚ Shukla‚ Sullivan TABLE OF CONTENTS 1.0.0. Executive Summary…………………………………………………………………4 2.0.0. Company History…………………………………………………………………….
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CET 111-ITGC CASE 2: WASTE MANAGEMENT SUES SAP FOR ALLEGED FRAUD AND BREACH OF CONTRACT 1. What actions should WMI have taken to lessen the risk of this project and avoid these problems? ANSWER: WMI should test first some of SAP’s software before letting each party sign their contracts. This will help to lessen the risk of the project and to avoid problems in the future. They should do some research about SAP and test the program. 2. What sort of losses has WMI incurred from the delay
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CASE STUDY Okay...are you ready for a CASE STUDY about GARBAGE?!? See the below case study and answer the questions at the end of this case. SMELLING SWEET SUCCESS AT WASTE MANAGEMENT By Martha Rogers‚ Ph.D. Not long ago‚ it appeared that refuse giant Waste Management was headed for the recycle bin. Accounting troubles forced the company to pay shareholders $220 million in 1998 because of overstated earnings. In 1999‚ shareholders sued after learning executives sold shares prior to an
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Significance of the study This study discusses about the importance of improving the system of hazard waste management and beneficial to the following: -Philippine Auto Components Inc the study would give the company a guide to improve their waste management and to lessen hazardous waste disposal expenses. -Students The study serves the students as their reference or guide in creating their research. -Future researchers The proposed study will benefits and help the future researcher
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