QUESTION 24 The U.S. Labor Department filed a complaint against Swatch Group alleging that the Swiss watchmaker improperly used transfer pricing to evade millions of dollars in customs duties and taxes. O True O False

QUESTION 24 The U.S. Labor Department filed a complaint against Swatch Group alleging that the Swiss watchmaker improperly used transfer pricing to evade millions of dollars in customs duties and taxes. O True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Case Study: Compliance Challenges in an International Subsidiary Introduction: Company XYZ, headquartered in the U.S., operates internationally through subsidiaries in several countries. This case study focuses on a specific international subsidiary that engaged in unethical practices, particularly creating off-the-book accounts to facilitate bribery payments to foreign officials. The subsidiary's lack of compliance measures and internal controls raises significant concerns about its adherence to the U.S. Foreign Corrupt Practices Act (FCPA) and ethical business conduct. Background: The international subsidiary in question has implemented internal controls, but notably, it does not utilize the COSO internal controls framework and lacks a comprehensive compliance program. This omission becomes critical as the subsidiary's actions involve undisclosed payments to foreign officials, leading to potential violations of the FCPA. Violations Under the Internal Control Provisions of FCPA: Use…
Under the Foreign Corrupt Practices Act of 1977 (FCPA): a. No US person or company that has securities listed on US markets may make a payment to a foreign officical for the purpose of obtaining or retaining business (pay a bribe) b. Companies that have securities listed on U. S. markets must make and keep financial records that accurately and fairly reflect transactions of the company and must design and maintain an adequate system of internal accounting controls. c. Certain payments to foreign officials known as “grease payments” made to an official to expedite the performance of duties that the official would already be bound to perform are permitted. d. only A and B are included in the FCPA e. A, B, and C are included in the FCPA
Chapter 11: Internal Control and COSO Framework During your audit of ABC Sports, Inc., a retail chain of stores, you learn that a programmer made an unauthorized change to the sales application program even though no work on that application had been approved by IT Management. In order for the sales application program to work, the programmer had to make modifications to the operating software security features. The unauthorized change forced the sales program to calculate an automatic discount for a customer who happens to be the brother-in-law of the programmer. The customer and the programmer split the savings from the unauthorized discount. The programmer modified the program and returned it to the librarian, who placed it into the files for live productions use. No other information was forwarded to the librarian. 1. What recommendation do you have for the management of ABC Sports to prevent this from recurring? 2. Explain why you believe the suggested internal control…
Question 9 Fraud risk factors are events or conditions that indicate which of the following? An opportunity to carry out fraud An attitude or rationalization that justifies a fraudulent action. An incentive or pressure to perpetrate fraud. All of the answers provided.
1. Is payment of bribes an unacceptable business practice within the U.S.? Justify youranswer with supporting evidence.
In the US banking history, that separated the operations of commercial banks and those of investment bank is repealed by a. Sabox b. the Glass Steagll Act c. Dodd-Frank Act d. the Gramm-Leach-Bliley Act e. Consumer Financial Protection Bureau c a b e d
Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and World Com) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part b LO 4-6, 4-9 b. Select the three conditions that are generally present when fraud occurs: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Management or other employees have an incentive or are under pressure that provides a reason to commit fraud. Circumstances exist that provide an opportunity for a fraud to be carried…
AIP 5.3 Separation of Duties LO 1 In a bank, the employee interacting with someone seeking a loan does not have the authority to grant the loan. Why is the employee not given the responsibility to grant the loan?