Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We have chosen to analyze the cases of Fuji Xerox and California Micro Devices. Fuji Xerox was founded in 1962 which provides document related solutions

We have chosen to analyze the cases of Fuji Xerox and California Micro Devices.

Fuji Xerox was founded in 1962 which provides document related solutions and services, manufactured and distributed multifunction devices, printers and production printers. During the period of 2011 to 2016, Fuji Xerox had practised inappropriate accounting by overstating revenue of around $473 million. Staff and management booked sales earlier to artificially inflate the revenue. An email was sent on the 8th July 2015 by a whistle-blower named Tony Night to executives at Fuji Xerox and Xerox Corporation, stating that inappropriate accounting practise had been taking place at Fuji Xerox.

California Micro Devices (CMD) was founded in 1980, the company specialized in making electronic components for silicon chips. CMD inflated revenue by having fictious sales, not reversing entries for returned goods and booking sales earlier to increase the stock price of the company, which made the company look better than it was to investors and shareholders. Improper accounting practice was found out after the annual audit report, the analysts had suspicion for write-down as it was close to Hitachi revenues. New auditors were hired after the incident to reassess the case.

These 2 cases were chosen as both companies have inflated revenues for personal benefit. However, the offenders are of different roles, as staff in Fuji Xerox did it for the financial incentives paid by the company. While the fraud was in California Micro Devices was done by the CEO and higher officials of the company for their personal gain. The remedial actions taken by both firms are different.

  1. Financial Reporting and Accounting Standard circumvented (300-350)
  • Which one promulgation
  • Which particular provisions involved

How have these provisions been violated?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing Uncover Fraud And Protect Your Portfolio

Authors: Kate Mooney

1st Edition

0071481826, 9780071481823

More Books

Students also viewed these Accounting questions

Question

Define Management by exception

Answered: 1 week ago

Question

Explain the importance of staffing in business organisations

Answered: 1 week ago

Question

What are the types of forms of communication ?

Answered: 1 week ago