An Eyeopener!

Posted by & filed under Fraud.

Description:  It certainly was an eye opener! As reported in the Ryerson University student newspaper called the Eyeopener, the student union appears to have $250,000 in credit card charges that need some explaining. That’s a lot of money for student leaders to be charging. A number of students began asking questions, with one commenting that… Read more »

More on those fictional renovations in NB

Posted by & filed under Auditing, Ethics, Fraud.

Description: Last week this blog discussed how the assessment service in  Province of New Brunswick invented renovations for over 2,000 residential properties in the province, causing big increases in tax assessments. The Premier has responded to the growing crisis by appointing a retired appeal court justice to examine the system. Anonymous insiders have claimed that… Read more »

Late warning

Posted by & filed under Auditing, Fraud.

Description: Perhaps it should not surprise us when government departments fail to implement a recommendation from the auditor general. But this one seems to defy imagination. In 2011, the federal auditor general informed the government that a consultant hired to manage First Nation finances had been part of an alleged fraud the previous year. Yet… Read more »

A most unusual theft

Posted by & filed under Auditing, Fraud.

Description: Internal control is important in preventing and detecting fraud and theft. The Royal Canadian Mint found out recently that metal detectors were not sufficient to prevent or detect an employee from stealing over $150,000 in gold by hiding it in a body cavity. Lawyer Gary Barnes noted that controls over the precious metals were… Read more »

Sino-Forest failings

Posted by & filed under Auditing, Fraud.

Description: The case against Sino-Forest Corp, the forestry company with the missing forests, is winding down more than a year and a half after it started. The founder of the company was accused of “gross breach of trust” for misleading investors. A board committee looking into the company’s disclosures has been unable to find the… Read more »

TD Bank sued in Ponzi scheme

Posted by & filed under Auditing, Fraud.

Description: TD Bank is being sued in Ontario Superior Court for $5.5 billion for its role in correspondent banking for the Stanford International Bank.  Stanford’s founder, Allen Stanford, is serving a 110 year prison sentence for leading a fraud that removed $5.5 billion from the pockets of over 20,000 investors. The claim filed against TD,… Read more »

Allegations sting Valeant shares

Posted by & filed under Financial Reporting and Analysis, Fraud, MD&A.

Description: Quebec based Valeant Pharmaceutical suffered a punishing week on the stock markets this week with shares dropping for four days before recovering Friday. The drop had cost the CEO over a billion in market value of his shares. Valeant stemmed the tide by announcing it would hold a conference call to address suggestions it… Read more »

Cashiers out in the cold

Posted by & filed under Ethics, Fraud, Internal control.

Description: Apparently it was cheaper for the organization running the rink where the Edmonton Oilers play hockey to fire all the parking lot cashiers rather than track down which cashiers had been stealing parking fees. Investigations this past summer caused management at Northlands to conclude that they were losing about 20% of the possible revenue… Read more »

Ouch ! – Home Depot Latest to be Hit

Posted by & filed under Auditing, Fraud, Internal control, Risk management.

Description: Home Depot appears to be the latest big-name retailer hit by hackers stealing credit card data. Estimates suggests this problem could affect up to 60 million account holders with a cost of up to $3 billion. Home Depot is offering a variety of services to help users who may have been hit in this… Read more »

Bank customer’s lawsuit raises questions about fraud liability

Posted by & filed under Financial Accounting, Fraud.

$80K fraud case highlights caveats and conditions giving banks a backdoor for liability Security of online credit cards in question The case of an Ontario man who was charged more than $80,000 on his credit card for purchases he claims he didn’t make is raising new questions about the security of online and credit card transactions and whether banks are shifting liability for… Read more »