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In July 2004, the US government filed civil and criminal
charges against four former executives of Netherlands based
Abhold's subsidiary of US Food Service Inc., an operator of
supermarkets such as Bi-Lo and Giant Food Stores. Two of the
four executives have pleaded guilty, and the other two were
indicted. The alleged widespread fraud included recording
completely fictitious revenues for false promotions and
persuading vendors to confirm to auditors the false promotional
payments. US Attorney David Kelley suggested the fraud was
motivated by greed of the executives to reap fat bonuses if the
company met certain financial goals. The auditors did not
uncover the fraud.
Required:
1. Describe the parties who were harmed or helped by this
fraud?
2. Explain how greed may have contributed to the fraud.
3. Why do you think the independent auditors failed to catch the
fraud?
MICROSOFT WORD 1-2 pages, cite APA format.

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In July 2004, the US government filed civil and criminal charges aga.docx

  • 1. In July 2004, the US government filed civil and criminal charges against four former executives of Netherlands based Abhold's subsidiary of US Food Service Inc., an operator of supermarkets such as Bi-Lo and Giant Food Stores. Two of the four executives have pleaded guilty, and the other two were indicted. The alleged widespread fraud included recording completely fictitious revenues for false promotions and persuading vendors to confirm to auditors the false promotional payments. US Attorney David Kelley suggested the fraud was motivated by greed of the executives to reap fat bonuses if the company met certain financial goals. The auditors did not uncover the fraud. Required: 1. Describe the parties who were harmed or helped by this fraud? 2. Explain how greed may have contributed to the fraud. 3. Why do you think the independent auditors failed to catch the fraud? MICROSOFT WORD 1-2 pages, cite APA format.