Crazy Eddie was convicted of white collar crime through fraud triangle. In spite of this modest beginning, Antar would eventually dominate the retail consumer electronics market in the New York City metropolitan area. Words: 847 - Pages: 4. Our frauds were focused primarily on skimming cash to avoid paying income and sales taxes. As a public company from 1984 to 1986, our frauds concentrated on inflating profits or overstating income. In 1997, Antar was sentenced to eight years in prison and was subject to numerous fines.
As a result, two F. That year, Antar established a corporate main office in Brooklyn, New York. An analysis of key ratios. Many businesses today are using benefit packages in creative ways as strategic tools to stay competitive in the recruiting market. .
She was like a sister to us. In order to help realize success, leadership is one essential factor that plays a key role. In this case study we will examine family, social, and intimate. Allowing company staff to distract auditors from doing filed work by engaging in social conversations, thereby wasting time during audits so they have to rush their work in the end to meet the audit deadline. He was later released in 1999. Accrued expenses went from 16. We will discuss more than just these questions : 1.
In May 1987, Eddie began proceedings to make the company a privately held company again. The Antars' lawyers immediately filed an appeal, citing what they believed was bias on the part of the presiding judge. What were their qualifications for the jobs they held? By 1987,Antar's firm, Crazy Eddie, Inc. It is interesting to note that in an American study on court cases involving insanity, both psychiatrists and lawyers believed there is a strong link between criminality and insanity. Before that could happen, -based businessman Elias Zinn and management consultant Victor Palmieri initiated a hostile. The business did very well in its startup years and began to grow.
Failure to age accounts payable. After a couple of calls from her boss Mr. Also, manipulating different data and combining with other information available will give a new insight. The company also reported lacking morality and excuses. Compute key ratios a list of america has a best-selling memoir about case 18. Auditing Case 2: Crazy Eddie, Inc. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.
. At the age of 20 years old, Antar opened up his very first store, Crazy Eddie. Failure to take copies of full inventories taken when leaving the premises. Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company. This led to various problems which the management could not tackle. Therefore, the debit memos were traced to a report listing the phony debit memos.
These ratios indicate problems or significant risks with a company or corporation. By June 1988, Crazy Eddie's suppliers were demanding the of the company, so they could recover money owed to them; in 1989 they got their wish. He started business by skimming money off of cash sales before they hit the register. Massive inventory inflation We continued to take advantage of our relationship with Wren Distributors. The company sold causal and office wear clothing to men and women, which is what we will be focusing on. Words: 1725 - Pages: 7.
Each of those three vendors reported significant discrepancies in amounts they claimed that Crazy Eddie owed them due to our issuance of phony charge backs to vendors in the form of debit memos. Susan explains how she was disliked by other senior managers when she got promoted to managerial position from technical lead in just six months. The profitability pictures doesn't really make sense. Explain what is implied by the term lowballing in an audit context. It is better to start the introduction from any historical or social context.
Exposure of fraud The company was making so much money that Eddie Antar was having trouble finding places to put it. Furthermore, Crazy Eddie did not act in the best interest of his company by paying higher salaries to his family members for hardly any work when he could have been using this money to help improve the business as a whole. However, the new entrants will eventually cause decrease in overall industry profits. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. A small reason for why the inventory was overvalued is due to the rapidly decreasing prices in electronics due to constant improvements in technology. In February 1987, the commenced a federal grand jury investigation into the financial activities of Crazy Eddie.