Test bank solution manual of the lesliefay companies (1)
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Test bank solution manual of the lesliefay companies (1)
CASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1) highly competitive women's apparel industry over the next four decades. Fred's son. John, took over the company in 1982 after his father's death. Over the next ten years, the younger Pomerantz added to his father’s legacy by maintaining Leslie Fay's prominent position in its industry. In January 19 Test bank solution manual of the lesliefay companies (1)93. John Pomerantz’s world was rocked when his company’s CFO. Paul Polishan, told him of a large accounting fraud that had inflated Leslie Fay’s operaTest bank solution manual of the lesliefay companies (1)
ting results during the previous few years. Polishan had learned of the fraud from his top subordinate. Donald Kenia. Leslie Fay's controller. Kenia rCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)cale fraud sent Leslie Fay's stock price into a tailspin and prompted the press to allege that Pomerantz and Polishan must have either participated in the various accounting scams or. at a minimum, been aware of them. Within a few months. Leslie Fay was forced to file for protection from its credito Test bank solution manual of the lesliefay companies (1)rs in federal bankruptcy court. In the meantime, investigations by law enforcement authorities corroborated Pomerantz’s repeated denials that he was iTest bank solution manual of the lesliefay companies (1)
nvolved in. or aware of. the fraud. However, those same investigations implicated Polishan in the fraud. Another party tainted by the investigations wCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1) it from uncovering the fraud.In July 1997. BDO Seidman contributed S3 million to a settlement pool to resolve several lawsuits stemming from the Leslie Fay fraud. In the summer of 2000, federal prosecutors obtained an eighteen-count felony conviction against Paul Polishan. The key witness who seale Test bank solution manual of the lesliefay companies (1)d Polishan’s fate was his former subordinate. Donald Kenia. During the contentious criminal trial. Kenia admitted that Polishan was the true architectTest bank solution manual of the lesliefay companies (1)
of the Leslie Fay fraud. Kenia had initially accepted responsibility for the fraud only after being coerced to do so by Polishan. In early 2002. PoliCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)aud. Leslie Fay emerged from bankruptcy court in 1997 but was bought out by another firm in 2001.32Case 1.5 The Leslie Fay Companies 33The Leslie Fay Companies—Key Facts1Under the leadership of Fred and John Pomerantz. Leslie Fay ranked as one of the leading firms in the very competitive women’s app Test bank solution manual of the lesliefay companies (1)arel industry during the latter decades of the twentieth century.2One of John Pomerantz's closest associates was Paul Polishan. Leslie Fay’s CFO who rTest bank solution manual of the lesliefay companies (1)
uled the company's accounting function with an iron fist.3John Pomerantz insisted on doing business the "old-fashioned way." which meant that the compCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)ashions eventually created financial problems for Leslie Fay. its principal customers (major department stores), and its leading competitors, problems that were exacerbated by a nationwide recession in the late 1980s and early 1990s.5Despite the slowdown experienced by much of the women's apparel in Test bank solution manual of the lesliefay companies (1)dustry in the late 1980s and early 1990s. Leslie Fay continued to report impressive sales and earnings during that time frame.6In January 1993. Paul PTest bank solution manual of the lesliefay companies (1)
olishan informed John Pomerantz of a large-scale accounting fraud over the previous three years that had materially inflated Leslie Fay’s reported salCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)nions on Leslie Fay's 1990 and 1991 financial statements and subsequently resigned as the company's audit firm after being named as a co-defendant in civil lawsuits filed against Leslie Fay's executives.8The centerpiece of the Leslie Fay fraud was intentional overstatements of period-ending inventor Test bank solution manual of the lesliefay companies (1)ies, although several other financial statement items were also intentionally distorted.9John Pomerantz was never directly implicated in the fraud, alTest bank solution manual of the lesliefay companies (1)
though many critics, including BDO Seidman. insisted that he had to share some degree of responsibility for it.10BDO Seidman ultimately agreed to pay CASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)Paul Polishan was convicted in 2000 of engineering the Leslie Fay fraud, principally due to the testimony of Donald Kenia.12Leslie Fay emerged from federal bankruptcy court in 1997 but disappeared a few years later when it was purchased by a large investment firm.34 Case 1.5 The Leslie Fay Companies Test bank solution manual of the lesliefay companies (1)Instructional Objectives1To pros ide students with an opportunity to use analytical procedures as an audit planning tool.2To demonstrate the need forTest bank solution manual of the lesliefay companies (1)
auditors to monitor key trends affecting the overall health of a client’s industry and to assess the resulting implications lor a client's financial cCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)dividual.Suggestions lor I seSeveral of the Section I or Comprehensive cases in this text, including the Leslie Fay case, contain exhibits that present multi-year financial statement data for a given company. These data provide students an opportunity to apply analytical procedures as a planning too Test bank solution manual of the lesliefay companies (1)l. Although a central theme of this casebook is the “people" aspect of independent audits. I believe it is also important that students be exposed toTest bank solution manual of the lesliefay companies (1)
the more mundane, number-crunching aspects of an independent audit. One way that you can extend Question 1 is to require different groups of students CASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)itors can learn more about the plausibility (or implausibility) of apparent trends in a client's financial data by comparing those data with financial information fora key competitor rather than with industry' norms. For example, Leslie Fay's gross margin percentage was generally consistent with tha Test bank solution manual of the lesliefay companies (1)t of its overall industry. However, if you compared the company’s gross margin percentages over the time frame of the accounting fraud with those of iTest bank solution manual of the lesliefay companies (1)
ts direct competitors, it would have been apparent that the margins being reported by Leslie Fay were "out of line" with those of its direct competitoCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)’’ is among the most common associated with problem audit clients. Published reports never indicated exactly how Polishan was able to psychologically control and manipulate Donald Kenia and his other subordinates in “Poliworld.” Apparently. Polishan was one of those individuals who had an innate and Test bank solution manual of the lesliefay companies (1) enormous ability- to impose his will on subordinates. You might ask students how they would deal with such a domineering superior. Since many of ourTest bank solution manual of the lesliefay companies (1)
students will have an "opportunity’' to work for one or more strong-willed individuals during their careers, they need to have appropriate coping mechCASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in the Test bank solution manual of the lesliefay companies (1)ectional facility. (You might discourage students from taking the “easy way out" by suggesting that they would simply choose not to work for such an individual. Seldom do we have the freedom to choose the disposition and personality- traits of our boss.)Case 1.5 The Leslie Fay Companies 35Suggested Test bank solution manual of the lesliefay companies (1)Solutions to Case Questions1. Following are common-sized financial statements and the requested financial ratios for Leslie Fay for the period 1987-19Test bank solution manual of the lesliefay companies (1)
91.19911990198919881987Current Assets:Cash1.21.11.41.51.3CASE 1.5THE LESLIE FAY COMPANIESSynopsisFred Pomerantz founded Leslie Fay in the mid-1940s and built the company into one of the leading Finns in theGọi ngay
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