Summary Of Aaer No. 1579 On Rite Aid's Fraud

Subject:AAER on Financial Statement Fraud by ceremony charge AAER No. 1579 on June 21, 2002 discloses to the public the ss orders to ritual countenance due to their fraudulent activity. benefit guardianships reported financial statements were false and misleading, and its books and records were inaccurate. eucharist serve was ordered to restate reported cumulative pre-tax income by a total of $2.3 billion and cumulative net income by $1.6 billion. rite upkeep was also ordered to cease-and-desist pursuant to scratch 21C of the Securities and transmute Act of 1934 from committing or causation any violation, and from committing or causing any future violation, of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. This ill-tempered AAER does non disclose the specific facts that caused the SEC investigation, but it is my understanding that ordinance wait on was being investigated due to disagreements with its audi tor, KPMG, and its suspicious severance assemble granting millions of dollars that were given to employees to keep them quiet over observance Aids fraud. Soon after the SEC investigated Rite Aid, they set off a number of violations by Rite Aid. Rite Aid failed to disclose improper vendor deductions or up charges. Rite Aid failed to accrue expenses for Stock Appreciation Rights (SARs).

Previously impact expenses were change by reversal to overstate income. Gross profit entries were made to load COGS and A/P. Rite Aid was also guilty of covert markdowns and creating vendor rebates to hide its gross profit entries. A judicial proceeding settlement! was also prematurely recognized to boost revenues. Rite Aid had been capitalizing expenses for new sites for their stores. However, they did not write-off the expenses when they had a utterly deal and did not build a new store. Instead, they go along to capitalize the expenses. Rite Aid also reversed will-call payables as revenue. These were supposed to be payables to insurance companies for prescriptions that...If you want to becharm a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper