Portfolio Choice #1: Company Fraud: An Evaluative Report

The Portfolio Project for ACT450 is a research report that identifies and analyzes a company that has been indicted for fraud. The report also will evaluate the auditor’s role in relation to the fraud.

To conduct your research, choose as a case study one of the companies listed below, or obtain approval from your instructor to use a public company not on the list. (Choose whichever company you want)
Just for FEET, Inc.
Health Management, Inc.
Jamaica Water Properties
The Leslie Fay Companies
NextCard, Inc.
Crazy Eddie
ZZZZ Best
Your report must describe the issues surrounding the company and any company policies in relationship to the impact those might have on public audits/accounting.
Provide the following elements in your paper:
An executive summary identifying the company, the fraud, the affected stakeholders, and the ultimate resolution
A brief history of the company
An analysis of the auditor’s role in the fraud, including any auditing standards that the auditors did not follow
Identification of internal controls that were circumvented or lacking and that could have prevented the fraud
Identification of accounting policies currently in effect that are designed to prevent similar problems from occurring again, or, if no policy exists, a proposal of a solution that would prevent a recurrence
Your paper should be 8-10 (Just write 8) pages in length. Follow APA format, according to CSU-Global Guide to Writing and APA Requirements. Include a title page and reference page. Use four outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

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Executive Summary
Leslie Fay companies Inc is an American company that designs, manufactures and markets human apparel (fundinguniverse.com, n.d.). The company was started by Fred Pomerantz who used to make dresses for the female corps during the Second World War. In 1947, Pomerantz decided to put his talent to use and started the company. The company had never experienced accounting fraud till 1993 when a huge accounting fraud was exposed. During the time American economy was experiencing a recession, and all the competitors were cutting back production and sacking employees.

(2,337 words)