The Case Of Phar Mor Inc. - 1433 Words

The Case of Phar-Mor Inc. Fraud will always be an issue but it has been more prevalence in the past before there were any specific guidelines for business entities and accountants to adhere and conform to. It is observed that those with higher positions in a company could let the power get to them at times and can use that power for their personal benefits. The Sarbanes-Oxley Act set standards to try to prevent future scandals like in the case of Phar Mor Inc., the Waste Management scandal and Enron. Sarbanes-Oxley (SOX) was created to address the reoccurrence the likes of the several major scandals of the past. The nature of those past years scandals made it clear that preventative measures was a possible way to prevent any future scandals. And the efficacy of Sarbanes Oxley Act, many people as well as companies believed that fraud is easy to prevent. In the case of Phar-Mor fraud, the company was involved in cover up and some accounts were created to hide the fraudulent activities. Bad inventory counts in the stores were made to help with the cover up and deceit about activities that cost hundreds of millions of dollars. (Williams, S.L., 2011) The Sarbanes Oxley Act came to existence after numerous scandals on financial misappropriation and inaccurate accounting records. The nature of scandals made it clear there are possible measure that could be used to prevent future occurrence of financial scandals. And the existence and effectiveness of Sarbanes Oxley has causedShow MoreRelatedCase 4.6. Phar-Mor Inc.8093 Words   |  33 Pages|Case 4.6 | |Instructional Notes | | | |Phar-Mor, Inc.: Read MoreThe Case Summaries For Phar Mor Inc. Fraud Essay1302 Words   |  6 PagesThe Case Summaries for Phar-Mor Inc. Fraud, Waste Management Scandal, Enron Scandal and Answers Phar-Mor Inc. Fraud Summary Phar-Mor Inc. fell prey to greed from the top. Unfortunately, the auditing firm assisted the organization with the conspiracy to defraud the users of financial reporting, the government, and the stakeholders. The chief officers used the funds for personal usage and appropriated funds to functions that were not related to the organization business. The financial statementsRead MoreEssay about Case 4.6 Phar-Mor, Inc.618 Words   |  3 PagesIf there was a reckless misrepresentation and lack of due diligence in verifying accuracy of financial information that is free of material misstatements, that alone would give me a reason to sue the auditors. B) Negligence as it is used in legal cases involving independence auditor is defined as â€Å"failure to conduct an audit with due professional care in the performance of work† C) The primary difference between negligence and fraud is fraud is the intentional concealment or misstatement of informationRead MoreEssay about Phar Mor Inc Case Study1184 Words   |  5 PagesSean Russi The Case of Phar-Mor Inc ACCT-525 October 31, 2012 Case Summary The case of Phar-Mor Inc was one of the biggest pre-Enron frauds that have been uncovered. Phar-Mor Inc established in 1982 Phar-Mor was a small little known discount drugstore. Phar-Mor became well known for offering medications at a 25-40% discount rate compared to your normal pharmacy store prices. Phar-Mor’s first six years of existence seemingly wereRead MorePhar-Mor Case1536 Words   |  7 PagesAssignment Week 1 The Case of Phar-Mor Inc Devry University ACCT 525-15768 January 12, 2014 Abstract The Sarbanes-Oxley Act of 2002 was implemented with the sole purpose of assuring the investors in the financial reporting system. One example is a case such as Phar-Mor which fabricated their inventory in most of their retail stores in order to conceal a massive fraud by the leading executives. Or the Waste Management scandal which did things such as capitalizing items which should haveRead MorePhar Mor Case8496 Words   |  34 Pages~ Case 6 Phar-Mor, Inc.: Accounting Fraud, Litigation, and Auditor Liability Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt LEARNING OBJECTIVES After completing and discussing this case, you should be able to . . Identify factors contributing to an environment conducive to accounting fraud . Understand what factors may inappropriately influence the client-auditor relationship and auditor independence Understand auditor legal liability issues related to suits broughtRead MorePhar-Mar Inc. Accounting Scandal2283 Words   |  10 PagesSummary Phar-Mor, Inc. was a deep-discount store that had substantial growth in a short period of time. It started with 15 stores and grew to over 310 stores in thirty two states between 1985 and 1992. At first Phar-Mor was seen as a major prospect in the retail market. With sales of over $3 billion and growing, Phar-Mors success even worried some of the biggest retail giant, including Wal-mart. The president, founder, and COO of Phar-Mor was Mickey Monus, who became quite extravagant withRead MoreBy Reviewing Sox’S Sections It Was Noted There Are Four1253 Words   |  6 PagesBy reviewing SOX’s sections it was noted there are four sections that could address the aspects of the fraudulent activities at Phar-Mor. It’s very complicated to precise the fraud would be successfully prevented in this case since it was perpetuated at a very high level thereby there is a great chance the executives would have found a way to hide it. In this case as the fraud was perpetrated at the top executive’s level, SOX probably would prevent the involvement of some other employees in the schemeRead MorePhar-Mor Fraud Essay1845 Words   |  8 PagesPhar-Mor, Inc was a thriving discount grocery store in the late 1980’s. Phar-Mor was moving product quickly but profit margins were not significant enough to pay the bills. By the early 1990’s, Phar-Mor declared bankruptcy due to fraudulent financial reporting and misappropriation of assets, making it one of the largest frauds in U.S. history. Below, we will use auditing standard AU 316.85 Appendix A in conjunction with the video â€Å"How to Steal $500 million† to analyze how incentives/pressuresRead MorePhar-Mor Inc1766 Words   |  8 PagesAssignment 1: Phar-Mor Inc By: Rich Allen SID: 250421110 Date: July 18th, 2013 Prof: M. TeKare 1a). A company would want to hire a member of its external audit for a number of reasons. The external auditor would have extensive knowledge of how the company works due to analyzing statements and performing many audit procedures and tests on the company and therefore would reduce time in order to become effective as an employee. The company would know the former auditor personally and have

Evolution and Fossil Fuels - 1984 Words

Evolution and Fossil Fuels Abstract In this research paper, I have discussed the theory of evolution. I have also mentioned some misconceptions regarding the evolution and have tried to give argument against those. Secondly, I have discussed the fossils and their formation along with the significance of fossil records. The modern science considers evolution as one of the basic original concepts regarding life (Pojeta Springer, 2001). The potent theory of evolution provides explanation of observable facts like the history of life preserved in the fossil record; the genetic, molecular, and physical similarities and differences among organisms; and the geographic distribution of organisms today and in the past (Pojeta Springer, 2001).Without a doubt, evolution provides a structure to the establishment of new biological and paleontological trends. A number of scientific disciplines have verified the theory of evolution. In addition to its significance to modern science, the common man considers evolution as one of the most misapprehended and divisive issues. Such a state of affairs is regrettable as it is pointless to make this principal scientific concept controversial (Pojeta Springer, 2001). According to the evolution concept, it is believed that the living flora and fauna have been developed by a procedure of continuing, uninterrupted transformation from earlier forms that existed in the past. The theory of evolution that supports the idea of organicShow MoreRelatedPersuasive Speech : Nuclear Energy Essay838 Words   |  4 PagesThe United States should drop fossil fuel power electricity and incorporate nuclear energy. Attention Step Attention Getter: Imagine a world filled with cold, darkness, and no security. Relevance Statement: Electricity is the heart of our current civilization. Without electricity we would regress into a feudal like stage which will slow down our evolution as a society Topic Disclosure: Today the primary source of fuel for the generation of electricity are fossil fuels such as coal, natural gasesRead MoreEvolution And Evolution Of Evolution1154 Words   |  5 Pages EVOLUTION Evolution is a scientific theory that was first introduced in the mid 1800’s and it refers to the biological changes that take place within a population of a specific species over the course of many generations. This theory was one of the most scientifically groundbreaking discoveries of our time, and since its discovery, scientists have been working hard to find more and more evidence on the subject. 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Biofuels, like fossil fuels are hydrocarbons made from a living or once lived organism that humans can use to power something and uses biological carbon fixation, a process that takes inorganic carbon and converts it into organic compounds (Wikipedia). However, unlike fossil fuels, which can take millions of years to form, biofuels are produced in a short period of time such as days, weeks, or months. Because humans have been burning fossil fuels for over a centuryRead MoreCreation vs Evolution Essay754 Words   |  4 Pageseverything. Another is evolution. Evolutionalists believe that there was a quot;big bangquot; which brought forth everything. In this paper, Im going to give the arguments that prove evolution wrong. nbsp;nbsp;nbsp;nbsp;nbsp;One of the main things that evolutionalists have a problem with is time. They say that the world has existed for millions and billions of years. There is a couple problems with this though. 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In order to take care of the high demand of the needs of everybody, people started using and burning natural resources and fossil fuels. Overtime, these resources have been becoming even scarcer and some countries have serious pollution issues. Due to this, there are many things in the environment that cause Global Warming as well such as the Greenhouse effect. The greenhouse effectRead MoreA Disaster Avoided By Naomi Klein1401 Words   |  6 Pagesdangerous and extremely dangerous climate change. If the 2 °C average warming of the earth happened, then a 6 °C change could have been expected around the poles and even higher in regions located near the equator. (Kevin Anderson - Delivering on 2 °C: evolution or revolution?, video) The subsequent mel ting of ice at the poles would have created a domino effect in which the water in the oceans would heat and cause more turbulent weather. This change in weather systems would have been felt globally as manyRead MoreEarth Essay900 Words   |  4 Pageswould never think ice can be a mineral. It occurs in nature in the form of hexagonal crystals and has a specific chemical formula (H2O).(chapter2). Part 4 In the following table, summarize what scientists have learned from the fossil record. Include the type of fossil evidence scientists used in their research. Add one more type of evidence with a summary to the table. Note. You may need to do outside research to complete the table. Cite any references used and provide a References page. Read MoreThe Effects Of Fossil Fuel On Canada s Northern And Aboriginal Communities1430 Words   |  6 Pagesthat use fossil fuels—either diesel fuel or coal-based energy generation (Weis, 2013). A disadvantage of diesel fuel is that it is too expensive and risky for these communities. Another disadvantage of fossil fuels is that it can compromise the environment by creating pollution and also contributing to climate change. For instance, numerous diesel spills in remote communities have contaminated buildings and local soils, and have impacted the quality of local air (Weis, 2013). Fossil fuel emissions

Stanford Prison Study free essay sample

This experiment helped psychologists to better understand conformity and human nature. The objective was to watch the interaction between the two groups of men without an obviously malevolent authority. Description The study took place in the basement of Stanford University by a small group of researchers during the summer or 1971. These researches were led by a man named Philip Zimbardo. 24 male students out of more than 70 applicants were chosen to be a part of the study. They would each earn 15 dollars a day to participate for 2 weeks (roughly equivalent to $85 in 2012). They each got randomly assigned roles of prisoners and guards in a mock prison located in the basement of the Stanford psychology building. The mock prison was basically a stimulated prison. It consisted of three 6 foot by 9 foot cells, and a 2 foot by 2 foot room with no windows that was known as the black box. We will write a custom essay sample on Stanford Prison Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Each cell had 3 prisoners, and they were punished by being put in the black box. The men who participated adapted to their roles extremely well ased on Zimbardos expectations, as the guards demanded some of the prisoners to psychological torture. Many prisoners passively accepted psychological abuse and listened to the all of what the guards would say. Some would willingly harass any of the other prisoners who even attempted to prevent the abuse. Researchers were exploring the destructive behavior of men towards each other over a period of time. The results of this study were shocking. Discussion The outcomes of the Stanford Prison study were outrageous; such was the abuse towards the prisoners in the experiment. The study turned out so bad, that it was dismissed after only 6 days. Parents were threatening to get a lawyer to get their son out of the study, and they also began to realize that the guards were enhancing their abuse to the prisoners in the middle of the night when no one was watching. Because of this harsh treatment by the guards, the prisoners were developing large amounts of depression and stress and 5 prisoners had to be sent home. Zimbardo helped to make a conformity bias where the focus on obedience is so strong as to unclear evidence of struggling and disobeying. However, their arguments proved powerful because they seemed to merge with a real-world example. People descend into tyranny Zimbardo suggested, because they conform unthinkingly to the toxic roles that authorities prescribe without the need for specific orders: brutality was a natural consequence of being in the uniform of a guard and asserting the power inherent in that role. The study shows that cruelty is a natural and unavoidable consequence of the motivation of humans to do exactly what authority says, whoever it is and whatever they want us to do. Personal reflection I believe that Zimbardo had a good idea originally, but his plans were not thought out completely. I dont think there is any way that you can give that much authority to someone without rules and not expect them to abuse it like the participants did. In my opinion, it was a good idea to end the case early because of the harsh treatment towards the prisoners. It caused them so much depression, only for getting 15 dollars a day They did nothing wrong to get treated like think it was an awtul way to do this experiment. It was a big sigh of relief to men when I was reading about the experiment that the study ended early. Conclusion The Stanford Prison study played a huge role in the study of psychology. The results of the experiment have been argued to prove the impressionability and the obedience of people when provided with an official person of authority. The experiment has also been used to demonstrate mental dissonance theory and the power that authority has on people. This experiment showed that the situation, instead of their individual personalities, caused the participants behavior.