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Bank of Gould Analysis

Bank of Gould Analysis

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Bank of Gould Analysis

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  1. Bank of Gould Analysis IIIG Consulting Co. Armita Amini Alex Brown Abigail Garcia Sergey Kogan Arsen Sarkisyan Arpineh Vartanian

  2. Rules • Please hold all questions until the end of the presentation. • Turn off cell phones and other electronic devices. • Raise your hand if you cannot hear the speaker. Alex Brown 2

  3. Outline • Facts: Armita Amini • Legalanalysis: Armita Amini and Serge Kogan • Accountinganalysis: Alex Brown and Arsen Sarkisyan • Ethicalanalysis: Abigial Garcia • Reccomendation: Arpineh Vartanian Alex Brown 3

  4. Facts WHY? Armita Amini 4

  5. Facts cont. Armita Amini 5

  6. LEGAL ANALYSIS

  7. Legal AnalysisDuty of Care Armita Amini 7

  8. Legal Analysis Foreseeability Test Serge Kogan 8

  9. Legal AnalysisRestatement View Do I owe a duty of care to the third parties being influenced by my work? Armita Amini 9

  10. Legal AnalysisDuty of Care Serge Kogan 10

  11. Legal AnalysisDamages Were damages actually caused by the breach of contract? If Young & Brobeck HAD NOT misreported financial statements Bank of Gould would not have loaned any money … And they wouldn’t have lost any money! Serge Kogan 11

  12. ACCOUNTING ANALYSIS

  13. Income Statement That’s a difference of $2,535,129.26!! Alex Brown 13

  14. Using Accounting To Fight Crime Alex Brown 14

  15. Accounting AnalysisEarnings Per Share Arsen Sarkisyan 15

  16. Accounting Analysis Gross Profit Margin Arsen Sarkisyan 16

  17. Accounting AnalysisReturn On Sales Arsen Sarkisyan 17

  18. Accounting AnalysisNet Profit Margin Arsen Sarkisyan 18

  19. ETHICAL ANALYSIS

  20. Who had to deal with ethics? HAYDEN FOOTE RICO PENA ELIZABETH GUTIERREZ Abigail Garcia 20

  21. HAYDEN FOOTE Abigail Garcia 21

  22. Were his actions ethical? AICPA CODE OF PROFESSIONAL CONDUCT SECTION 501-4 Ifa member signs a document that contains any false information he/she is considered to have committed a discreditable act and therefore has breached the code. Abigail Garcia 22

  23. RICO PENA Abigail Garcia 23

  24. Were his actions ethical? AICPA CODE OF PROFESSIONAL CONDUCT SECTION 53 - ARTICLE II THE PUBLIC INTEREST All CPA’s have a responsibility to serve the public, which includes the client and investors. Rico breached this code by falsifying the statements. CATEGORICAL IMPERATIVE TEST If everyone took the same action then no financial statement would be trusted and the whole financial system would not be able to grow if no one trusts the business’ financial statements. Abigail Garcia 24

  25. ELIZABETHGUTIERREZ Abigail Garcia 25

  26. Were her actions ethical? Utilitarian Theory She was aware that Rico didn’t do it in accordance with GAAP and didn’t tell someone in a higher position. The knowledge of the falsity of the statement would have done the greatest good to the greatest number of people. The victims are the Bank of Gould, Young and Brobeck, Sensor Circuits and their employees and investors. Abigail Garcia 26

  27. Recommendations Legal Y&B breached duty of care under Restatement View Accounting Y&B were negligent because they didn’t follow GAAP Ethical Y&B were unethical under the Categorical Imperative Test Arpineh Vartanian 27

  28. Thank you! The floor is now open for questions.

  29. APPENDIX

  30. REFERENCES • Business 302 Review Material. (2010). Business Law Review. Retrieved October 15, 2010, from http://www.csun.edu/bus302