Xerox Essay example

Words: 5955
Pages: 24
Open Document
American Accounting Association
DOI: 10.2308/iace.2011.26.1.219

ISSUES IN ACCOUNTING EDUCATION
Vol. 26, No. 1
2011
pp. 219–240

Xerox, Inc.
Edward Seipp, Sean Kinsella, and Deborah L. Lindberg
ABSTRACT: This audit case examines an interesting real-life instance of financial statement manipulation by a client ͑Xerox, Inc.͒ and the related audit failure by the audit firm ͑KPMG͒. The facts of this case are drawn from several SEC Accounting Enforcement and Administrative Proceedings Releases. Learning objectives specific to this case include an increased awareness of the importance of reserves, including when their use is appropriate or inappropriate; better understanding of the role of a concurring partner; improved perception of when …show more content…
During the period 1997–1999, Romeril, Philip
Fishbach, Xerox’s corporate Controller, and Daniel Marchibroda, the Assistant Controller who reported to Fishbach, released $415 million of reserves held in the cookie jar to “close the gap” between actual results and analysts’ expectations ͑SEC 2003a͒. Gregory Tayler, who served in various capacities of Xerox management during this time, participated in the release of $100 million of these reserves. Exhibit 1 summarizes the key personnel involved in this case for both
Xerox and KPMG.
Reserves were tracked on schedules prepared by employees in Fishbach’s office. Marchibroda and Fishbach reviewed these schedules quarterly and released the reserves, as needed, to meet the projected earnings for the quarter. Romeril received copies of these schedules as well as schedules prepared by the independent auditors that tracked the reserve balances on a quarterly and annual basis. The “cookie jar” contained 22 reserves ͑SEC 2005a͒, including:

Issues in Accounting Education
American Accounting Association

Volume 26, No. 1, 2011

221

Xerox, Inc.

FIGURE 1
Xerox, Inc.

Source: SEC (2005a).

• The Rank Reserve. In 1997, Xerox purchased the remaining 20 percent interest that the
Rank Group plc held in Rank Xerox Ltd., making Xerox the sole owner.2 At the time of the purchase and at KPMG’s suggestion,
Show More

Related Documents: Xerox Essay example

Xerox Case Study Essay

MT5012 2013-02-21 Xerox Case Study Q1. What kind of strategic planning process (bottom-up or top-down) did Xerox follow for its turnaround? What interference can you make about the effectiveness of this approach? I would recognize Xerox’s strategic planning process as a top-down one, considering a lot of emphasis in the case is put on the major change achieved by the CEO Mulcahy. This could indicate that many of the ideas regarding cutting costs and regaining growth descended from one person…

Words 1039 - Pages 5

Xerox Scandal Essay example

Xerox Corporation Xerox Corporation is a $16 billion technology and services enterprise that helps businesses deploy smart document management strategies and find better ways to work. It’s intent is to constantly lead with innovative technologies, products and solutions that customers can depend upon to improve business results. Xerox provides the document industry’s broadest portfolio of offerings. Digital systems include color and black-and-white printing and publishing systems, digital presses…

Words 2773 - Pages 12

Essay about Fuji Xerox

full impact. The case of Xerox and Fuji Xerox gives us a unique opportunity to trace the evolution of such an alliance over a long period of time. We can learn a lot from this experience, and try both to avoid Xerox’s mistakes and copy Xerox’s success. 2 While this case is about a particular type of alliance—a separate enterprise owned by Xerox and Fuji Photo Film— it also contains elements of other types of alliance. The relationship between Xerox and Fuji Xerox, for example, is itself managed…

Words 5590 - Pages 23

Xerox - Book in Time Essay

Raja Kurapati Marketing 508 - 08/04/05 Xerox Case Study Analysis Xerox's "Book In Time" is a revolutionary product, presenting some new opportunities for the company. It is simply a matter of costs. The Book-in-Time equipment allows for a publishing company to produce a 300-page book for $6.90, something which could have been previously reached only for lots larger than 1,000 copies. A significant decrease in publishing costs, given the fact that these cover up to 20 % (including the paper…

Words 1074 - Pages 5

Essay on Xerox Understands That To Gain In Business Advantage

Xerox has done so much in the name of diversity, but I don't think their work is finished. Xerox understands that to gain in business advantage, it must continually develop strategies that address currently trending diversity issues What we traditionally consider diversity categories, Race and Ethnicity, Gender, Sexual Orientation, Age, and Ability have grown to include, national origin, citizenship status, and union status. What will be considered traditional diversity issues in the future are…

Words 366 - Pages 2

Pioneer Petroleum Essay

Ramon V. Del Rosario College of Business Master of Business Administration Financial Management FNC535M RCBC Plaza Room No. 526 “Big City Trust Company” Case Analysis & Corporate Strategy Group 4 Report Estepa, Joan Carla E. | Member | BSC Management, Corporate Focus | Reyes, Corinne Erlyn L. | Member | BA Humanities with Professional Certificate in Business Management | Yan, Lee Rainier C. | Member | B.S. Chemical Engineering | Dean Atty. Joe-Santos Balagtas Bisquera MBA…

Words 6012 - Pages 25

Obesity In The Workplace Case Study

itself, is a disability (State Division of Human Rights v. Xerox). Catherine McDermott successfully represented herself in court after being denied employment by Xerox because of her weight. She was subjected to a standard medical evaluation which consisted primarily of checking a person’s height and weight. Based upon these results, the physician labeled Ms. McDermott as “obese,” and “not acceptable” (State Division of Human Rights v. Xerox). The court upheld the Appellate Division’s decision that…

Words 461 - Pages 2

Anne Mulcahy Case Study

Leaders” in 2012 (Williams). She is the CEO at Xerox, a business that services document management and workflow solutions that help business and governments work better (Xerox). Their main products include printers, scanners, and ink as well as services like communication-marketing solutions, document processing and printing capabilities (Xerox). Mulcahy is from Rockville Centre, New York and has a B.A. from Marymount College. Mulcahy’s Career at Xerox is shown below. (Reference for Business) • 1976-1991:…

Words 444 - Pages 2

Debate The Pros And Cons Of Allowing These Companies To Target Children?

Assignment 3 Name: Grade: Date Due: 9/24/2013  Late 90%  Late 80%  Late 70% Chapter3 Marketing Ethics: Targeting Children Online page 95 The almost 24 percent of the U.S. population under 18 years old wields billions of dollars in purchasing power. Companies such as eBay and Facebook want to capitalize on those dollars—legitimately, that is. EBay is exploring ways to allow consumers under 18 years old to set up legitimate accounts to by buy and sell goods. Children already…

Words 1496 - Pages 6

Six Sigma and General Electric Essay

Sigma has been accepted by many major firms such as Xerox, and General Electric. The successes of Xerox and General Electric illustrate that Six Sigma is good for the quality improvement of one organization. In the early 1980s, Xerox encounters a big challenge from its Japanese competitors. Its market share fell to less than 50 percent because of its Japanese competitors. In this condition, rework, losing business, and scrap are the problems that Xerox need to face. However, even if in this predicament…

Words 525 - Pages 3