Phar Mor Inc. Overview - 1724 Words

Margaret Linden ACCT525 Week 1 Assignment May 5, 2017 Phar-Mor Inc. Phar-Mor Inc is a discount drugstore chain, 1992 it because associated with a Giant Eagle which was a family-owned grocery chain along with the distribution company Tamco Distributors co. This company would use Power buy which is when the company buys the largest possible amount of product at a great price because they are buying so much of the product. Then the company will turn around and selling the product at a discount anywhere from 25%-50% off what the retail price would be. The Vice-president of Tamco was then name the new president of the new company Phar-Mor Inc. and by 1987 had increased to 70 stores and had grown even more†¦show more content†¦One would assume that they should have brought a new person in to do the audit but then that person would have been on the job at the beginning of the scandal and carried it through until the very end. Another thing that would have prevented the Phar-Mor scandal could have come from section 206, â€Å"Conflicts of Interest†. This was a big one because three of the members of the fraud team at Phar-More were former Coopers and Lybrand auditors which could have been used as conflicts of interest and at least one of those men had been with the company for several years and because he was hired more than a year before they were audited but was able to get out of it on a technicality. He later admitted to covering it up and misstatement was illegal. Waste Management Scandal Waste Management Inc. is a publicly traded for profit waste management company and is one of the largest waste collection corporation in North America. It owns 252 landfill sites and has over 39,000 employees. The waste management scandal was one of the largest accounting frauds we have seen. In 2002 there was lawsuit that was brought against the founders of the waste management Inc. which charged them with a huge financial fraud that lasted for about five years which took place between 1992 and 1997. During this scandal Waste Management was accused of increasing profits by $1.7 billion dollars, gaining almost $29 million from annual bonuses and insider trader.Show MoreRelatedWaste Management33554 Words   |  135 Pagesaccounting fraud and auditor legal liability c a S eS inc lu de d in t hiS Se ction 4 89 99 4.1 Enron Corporation and Andersen, LLP Analyzing the Fall of Two Giants . . . . . . . . . . . 4.2 Comptronix Corporation 4.3 Cendant Corporation . . . . . . . . . . . . . . . . . . . . . . Identifying Inherent Risk and Control Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . 111 119 127 137 Assessing the Control Environment and Evaluating Risk of Financial StatementRead MoreEnterprise Risk Management4038 Words   |  17 PagesBCCI Sumitomo Corporation Tokyo Shinkin Bank Banca Nazionale del Lavoro Daiwa Bank Barings Non-Financial Institutions: LTCM Texaco, Inc. Cendant Corporation Dow Corning St. Francis Assisi Foundation Mettlgesellschaft Owens Corning Fiber Glass Orange County Atlantic Richfield Kashima Oil Showa Shell Prudential Securities Drexel Burnham Lambert General Motors Phar Mor Loss Amount $20 million. Initial Estimates $17 billion $2.9 billion $2.3 billion $1.8 billion $1.1 billion $1 billion $4 billion $3