today s topics n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Today’s Topics PowerPoint Presentation
Download Presentation
Today’s Topics

Loading in 2 Seconds...

play fullscreen
1 / 16

Today’s Topics - PowerPoint PPT Presentation


  • 89 Views
  • Uploaded on

Today’s Topics. Passion Legal Resolution and Courts Overview Criminal Litigation Process Remaining shenanigans—part I. Caveats. I am not an attorney Always obtain legal advice. Legal System. State court system Federal court system

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Today’s Topics' - candid


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
today s topics
Today’s Topics
  • Passion
  • Legal Resolution and Courts Overview
  • Criminal Litigation Process
  • Remaining shenanigans—part I

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-1

caveats
Caveats
  • I am not an attorney
  • Always obtain legal advice

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-2

legal system
Legal System
  • State court system
  • Federal court system
  • Note the time and cost of using the legal system for resolution
    • Recall our earlier discussion about the lack of legal resolution

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-3

state courts state and local laws
State Courts: State and Local Laws
  • Lower trial courts (i.e. Municipal Court)
  • Superior court
    • Generally a function of amount of suit
  • Appellate Court
  • State Supreme Court

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-4

federal courts federal laws
Federal Courts:Federal Laws
  • Bankruptcy and Tax Magistrates
  • Tax Court and U.S. District Court
  • Circuit Court of Appeals (12 circuits)
    • 9th Circuit (our circuit) is extremely liberal
  • U.S. Supreme Court

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-5

litigation process
Litigation Process
  • Criminal, civil or no litigation
  • Settlement often takes place before trial
    • Why do you think that is?

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-6

criminal trial
Criminal Trial
  • Public impact
  • Jail, fines and restitution
  • 12 jurors
  • Unanimous verdict
    • Beyond a reasonable doubt

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-7

civil trial
Civil Trial
  • Violation of private rights
  • Compensation for damages
  • 6 -12 jurors
  • Often judge-only based hearings
  • Unanimity not required
    • Preponderance of the evidence

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-8

criminal litigation process
Criminal Litigation Process
  • Defendant’s rights strictly protected
    • 4th, 5th and 6th amendments
    • Federal rules of evidence and criminal procedures
  • Process
    • Filing of charges
    • Arresting and charging the defendant
      • Illegal searches preclude the use of the evidence—patience!
    • Preliminary hearing of Indictment by a Grand Jury
      • Less public disclosure via a Grand Jury
    • Arraignment—not guilty, guilty or “nolo contendere”
    • Discovery and Pre-trial Motions
    • Trial
    • Appeal

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-9

shenanigan 7
Shenanigan #7
  • “The sun’ll come out tomorrow…”
  • How to make your firm’s future sunny
  • Shifting future expenses into today’s operations
  • Key question: why do firm’s do this?

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-10

techniques
Techniques
  • Inflating a special charge
  • In-process research and development
    • IPR & D
  • Accelerating use of discretionary reserves

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-11

inflating special charges
Inflating Special Charges
  • The continuing saga of “Chainsaw” Al
    • Illusion of a successful restructure
  • How Sunbeam did it
    • Inflated special charges
    • Release of reserves in the future
    • Ultimately, bogus revenue

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-12

sunbeam s red flags
Sunbeam’s Red Flags
  • Excessive post-acquisition charges
  • Reserve declines
  • DSO growth
  • Plummeting cash flow from ops.
  • Unrealistically high gross margins

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-13

other examples
Other Examples
  • Cisco’s inventory reserve reversal
  • JDS Uniphase’s goodwill

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-14

in process r d
In-Process R & D
  • What is it?
  • Some real world examples
    • General Instrument
    • Compaq
    • U.S. Robotics
    • Disney
  • The bottom line?
    • Examine these practices closely

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-15

acceleration of discretionary expenses
Acceleration of Discretionary Expenses
  • Prepayments
  • Reductions in depreciable lives

FORENSIC ACCOUNTING - BA124 - 2010 Slide 18-16