Case a couple of

Jamaica Drinking water Properties

Desk of Material

Issues………………………………………………………………………………..... one particular Facts………………………………………………………………………………….. a couple of Analysis…………………………………………………………………………….... eleven Conclusion/Recommendations………………………………………………………. 18 Reference/Bibliography…………………………………………………………….... 19

Issue

1 . Following discovering the suspicious things in JWP's accounting documents, should this individual have taken a different course of action than he would? 2 . What measures may and should arrive at make it easier to get corporate staff to ‘‘blow the whistle'' on a deceitful scheme they will uncovered inside the firm? several. Should business, accounting businesses, and other agencies explicitly praise ethical behavior by their personnel and professionals? 4. What measures can easily accounting companies take to decrease the risk that personal human relationships between consumer personnel and members of the audit involvement team will never adversely impact the quality of your audit? your five. Was the 1988 ‘‘retention agreement'' that Ernst & Young made with JWP appropriate? 6th. Why do Ernst & Young agree to pay a sizable settlement to JWP's stockholders but made a decision to contest the lawsuit submitted against it by the insurance agencies?

Facts

This kind of accounting scam involves a company called Discovery bay, jamaica Water Houses Inc. with based in the newest York-based. The individual who discovered the fraud was David Sokol. In his early career, he encountered some issues that typically interferes the jobs of many business executives, including favoritism and corruption. Yet , in 1992 David obtained the position of president and COO of Jamaica Normal water Properties. JWP had an remarkable history of continual profitability and revenue expansion that had been threatened by its welcoming operations and heavy management burden. In early 1992, the business had 117 offices and 23 subsidiaries scattered across the nation several overseas operating products, and a massive new division that was competing in a lucrative and rapidly growing market JWPs CEO Claire Dwyer knew that in spite of being soft-spoken and thoughtful, Sokol had a well- earned reputation of as an effective business manager whom could quickly " makes a company into shape. Sokol eventually succumbed to Dwyer's persistent prospecting efforts and agreed to presume responsibility intended for directing JWP's day-to-day procedures. The Discovery bay, jamaica Water Supply Firm began businesses in 1886 as a business that provided water to a couple neighborhoods inside the Queens area of New York. City Little by little the company expanded its geographic market and eventually became certainly one of New York California's largest drinking water utilities. Inside the mid-I 960s, Martin Dwyer took control over the company Dwyer realized that the heavily controlled water power industry limited his provider's profit potential, so he decided to part out into other businesses. Because of his familiarity with government agencies, Dwyer began providing various contracting and structure services to local cities. Soon, Dwyer's company was installing telephone lines, focusing on street lighting projects, and dev eloping traffic control systems. Above the next many years, the company expanded into other lines of business simply by acquiring a varied variety of small companies in the New York City metropolitan area. Throughout the long living, Jamaica Hydrant had been seen as financial balance slow but steady expansion, and humble profits. During the 1960s and 1970s, the organization grew speedily, while its profits—and losses—vacillated dramatically from year to year. To financial the company's development program, Dwyer borrowed heavily from banking institutions and other lenders. By the mid-I 970s, large interest rates, a severe countrywide recession, and a series of poor decisions simply by Dwyer and his management team had influenced the company to the verge of bankruptcy To salvage the business, Martin Dwyer stepped straight down as its top executive 33 years ago and placed his 30-year-old son, Toby, in charge. Younger Dwyer quickly disposed of the...

References: U. S. Investments and Exchange Commission. Audit Committees and Auditor Self-reliance. Retrieve from: http://www.sec.gov/info/accountants/audit042707.htm. Oct 27, 2014.

U. S i9000. Securities and Exchange Commission. Sarbanes-Oxley Action of 2002. Retrieve from: https://www.sec.gov/about/laws/soa2002.pdf. March 27, 2014.