Audit Firms Suggesting Companies Be Required to Have Forensic Audits

The six biggest accounting firms in the United States have suggested that companies should be forced to submit to forensic audits every three to five years. These types of engagements would be aimed at finding fraud. The six firms include PricewaterhouseCoopers, Deloitte & Touche, Ernst & Young, KPMG, Grant Thornton and BDO Seidman. They say … Read more Audit Firms Suggesting Companies Be Required to Have Forensic Audits

Computer Associates Ex-Executive Sentenced to Prison

Sanjay Kumar, the former chief executive of Computer Associates International (now called CA Inc.) has been sentenced to 12 years in prison and fined $8 million for his guilty plea to charges of securities fraud and obstruction of justice.

Prosecutors say that Kumar created “35-day months” in order to book additional revenue after a quarter ended and the books should have been closed. He then engaged in a cover-up scheme meant to silence a witness to the accounting misdeeds. It is believed that the fraud cause the company to misstate revenue by $2.2 billion

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Richard Hatch of “Survivor” fame gets prison sentence

The first winner of the popular reality television show “Survivor” was sentenced to 51 months in prison for his conviction on tax evasion charges. Richard Hatch, 45, was convicted in January of failing to pay taxes on the $1 million prize he won from the TV show, as well as other income. He was sentenced … Read more Richard Hatch of “Survivor” fame gets prison sentence

The IRS Is Using Outside Debt Collectors

Starting in September, the IRS is contracting with outside debt collectors to go after delinquent taxpayers. The American Jobs Creation Act of 2004 authorized the IRS to contract with private firms to do this work. The three firms currently under contract to perform these services are The CBE Group Inc., Linebarger Goggan Blair & Sampson, LLP, and Pioneer Credit Recovery, Inc.

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