Economic Statement Fraud Analysis
" XEROX CORPORATION”
The objective of the assignment was going to do a great analysis of the company's economical statement and identify areas in exactly where financial scam may be occurring or provides occurred. The company I chose to get the job was Photocopied Corporation (" Xerox”). For me based on the analysis of Xerox economic statements via 1998 to 2000, an assessment outside options such as Securities Exchange Commission (" SEC”) filings, and other periodical assets, I believe that red flags been with us prior to the deceitful schemes getting uncovered. The senior supervision of the Photocopied Corporation misled investors regarding earnings in order to meet Wall Street objectives and to increase the company's inventory price which often resulted in higher compensation and higher prices for personal revenue of stock for the parties included. One of the main fraudulent schemes that the company applied was manipulation of salary.
Xerox Corporation is publicly traded company. It's incorporated in New York which manufactures provides and rents document imaging products, services and items in the United States and 130 other countries. In 2000, Xerox employed about 92, 500 people throughout the world, 50, 1000 of them in the us. For the year ended Dec 31, 2150, Xerox reported total revenues of $18. 7 billion dollars and a net loss of $273 million.
In order to decide if fraud got occurred, a fraud evaluator would have to gain an understanding of management and what factors motivate these people. This area is equally as important as understanding the financial statements information. As a fraud evaluator some of the key questions which should be covered are: Is managing under pressure by Wall Street buyers and experts to meet making expectations? Is definitely management's payment primarily performance based, just like bonuses, commodity? Does management set unduly aggressive financial targets? Precisely what is the " tone on the top”? Additionally , the scam examiner should compare the...