Potential Cause of Technology Products Division Irregularities
Examples of some of the irregularities surfaced by the internal audit report include, but are not limited to: deferral of incurred expenses, early recognition of revenue, reversal of allowance accounts, channel stuffing, and misclassification of assets and expenses. These issues are likely the result of poor management. It is clear from the CEO’s attitude in the Q1 Management Meeting that the tone-at-the-top in Stamford International is to “bend” or break every accounting rule possible, so as to make quarterly and annual earnings reports appear as positive as possible to external parties. To say that “a fish rots from the head down,” would be appropriate in this situation.
Other posts on the Stamford International case study:
Stamford International Case Study
Stamford International Case Study, Co/CEO
Stamford International Case Study, Technology
Stamford International Case Study, Sarbanes-Oxley
No comments:
Post a Comment