My Summer at Choate Rosemary Hall

This late spring at Choate Rosemary Hall was the best summer that I have ever had up until this point. The classes were testing yet additionally leaving simultaneously. I truly love the classes there in light of the fact that the quantity of understudy per one instructor is extremely little so the educators give more consideration toward you. Likewise, the understudy becomes more acquainted with one another all the more so they can cooperate better. One of my preferred classes throughout the mid year was Anatomy and physiology since we had a great deal of hands on involvement in dismemberment. My preferred dismemberment in the class is the point at which we get the opportunity to analyze and investigate the life structures and physiology of a rodent’s body since it was the longest and intriguing analyzation that we had throughout the mid year program. At the point when we get done with the dismemberment, our instructor snaps a photo of our analyzation and sends it to us and we needed to name it. Another undertaking that I like about Anatomy and Physiology is the owl pellet. We needed to assemble back a dispersed rat skeleton together and it was very tedious. Other than the classes I likewise like the dormitory life was. At home my parent thoroughly take care of me yet at Choate I needed to do everything myself, which caused me to feel like a grown-up. Each morning I needed to wake up without anyone else and go to breakfast. My Favorite part about dormitory life is clothing. My companion and I generally wash our materials together to set aside some cash and we would simply sit in the pantry conversing with one another about one another societies. Once I overlooked my highlighter in my pocket during washing so the entirety of my fabrics was ruin. The error of placing a highlighter in my pocket turns out truly cool since it made one of my shirts extremely pretty so everybody said that I was the best slip-up that I’ve at any point made. Choate’s grounds was huge. On the primary day of class I needed to change my calendar and didn’t know anyplace to go to so I needed to go around the grounds attempting to discover the late spring program office for close to 60 minutes. Consistently I have just 30 minutes for lunch since one of my classes was on the opposite side of the grounds and it would take me 10 minutes to stroll there. I think my preferred structure at Choate is Hill House since that is my dormitory, the feasting corridor, and it’s likewise the spot that my companion and I hang out before study hours. Slope House has a cooled relax that nobody knows. In this way, it was our mystery alcove and our hanging spot. Additionally every Saturday we held a film night at Hill House since checks in is at 11 p. m. My preferred part about this late spring is investing energy with companions that I had made during the program. In the first place I didn’t know any other person other than the Memphis Prep researchers so I remained with them. After the main week I begin to know more individuals so I spend time with others. We would go out to see the film pretty much every Wednesday since we didn't have anything to do. At some point we would go to the library to peruse mangas and books since a few of us needed to complete our mid year understanding rundown. For the most part after we go to the library we would go to the sweets shop down the road from the library to get frozen yogurt. At some point we would skip supper at Choate’s eating lobby and eat at an eatery that is close to the treats shop. The one thing that I loathe the most about this late spring program is bidding farewell. On the most recent seven day stretch of the program we have supper together at an eatery consistently or requesting Chinese food, attempting to invest however much energy with one another as could reasonably be expected. Additionally, on the last shopping center excursion we would attempt to purchase things to blessing one another so we will recall one another. The evening of the Last Dance we went the storm cellar and conversed with one another and marked each other shirts and diaries. The most recent day of the mid year program was the hardest day for me since the entirety of my companions were leaving. We cry each time somebody is leaving and we would remain there watch them leave and before the day's over the entirety of my tears were evaporated. Going to Choate’s summer program is the best thing that had transpired. The classes and instructors were extraordinary. The grounds was huge and it caused me to feel like I’m in school. I had made a great deal of new companions that I will always remember. Choate summer program is additionally groundbreaking for me since I figure out how to be free from my folks and get things done all alone. It had extended my insight in Anatomy and Physiology. I likewise discover that there are a great deal of chances out there sitting tight for you to take it and you need to strive to accomplish it. The best open door that I had taken for the current year is to apply for Memphis PREP on the grounds that without them I wouldn’t think about Choate Rosemary Hall or some other live-in school.

Life cycle marketing Free Essays

The family life cycle speaks to a technique by means of which the market for specific merchandise and enterprises is divided by the phase in the family life that the specific shopper has reached. This advertising strategy thinks about the family arrangement starting with youthful, single people without any youngsters as far as possible up through marriage, kid raising, and retirement stages. The factors associated with each phase of the model incorporate age, conjugal status, pay, business (vocation), and the presence of youngsters (Fritzsche, 1981). We will compose a custom paper test on Life cycle advertising or on the other hand any comparable subject just for you Request Now One phase in this model is the single man stage, which depicts people who not, at this point live with guardians yet who have not hitched or become guardians. They typically have an elevated level of optional pay regardless of the way that their livelihoods lower than normal. In view of the less budgetary weights (contracts, kids, and so on.) and their promise to entertainment, such people are normally keen on purchasing dress, travel, and fundamental family furniture or gear. One magazine that could be utilized as an advertising apparatus is People, and TLC’s What Not to Wear speaks to a TV program that would be reasonable to this gathering. Both would be compelling as they take into account design and to the diversion interests of that gathering. Another showcasing bunch as per this model is the Full Nest One (Fritzsche, 1981). The Full Nest One phase finds unexperienced parents with their most youthful youngster being younger than six. The guardians at this stage have low optional wages on the grounds that the requests of the youngsters are set at the most noteworthy need (1981). These people are in this manner likely just to purchase necessities, for example, grains, diapers, and children’s attire. A TV program and magazine that are likely promoting devices for this segment are (separately) FOX’s Are You Smarter Than a Fifth Grader  and Disney’s Family Fun magazine. Guardians are probably going to watch or read them with their kids. The Full Nest Three phase portrays more established guardians with secondary school or school age youngsters. These people have a superior monetary situation, with spouses liable to be grinding away and increasingly optional pay (Fritzsche, 1981). Such a family is probably going to be keen on purchasing occasions, pleasant furnishings, and complex apparatuses. A decent magazine for promoting to such a segment is Travel and Leisure, as such people are probably going to have the cash and time to take get-aways. A decent TV slot for showcasing to them is HGTV, as this highlights elegantly designed homes that may give them thoughts for purchasing furniture and machines. Reference Fritzsche, D. J. (1981). â€Å"An investigation of vitality utilization designs by phase of family life  â â â â â cycle.† Journal of Marketing Research, 18, pp.227-32. Step by step instructions to refer to Life cycle promoting, Essay models

7 Timely 2020 Nonfiction Books to Add to Your TBR List

7 Timely 2020 Nonfiction Books to Add to Your TBR List With so many exciting new releases to look forward to in 2020, it can be hard to keep track. But one things for sure: You wont want to skimp on the nonfiction next year. Whether you generally prefer true stories or simply want to try delving outside the fiction pool in the new year, there are plenty of worthy upcoming options to choose from. From an unflinching look at Silicon Valley to a behind-the-scenes glimpse of royal life, here are seven highly entertaining and insightful nonfiction books to check out in 2020. Why We Can’t Sleep: Womens New Midlife Crisis by Ada Calhoun (January 7, 2020) Despite having a solid career and being married with children, Gen X-er Ada Calhoun found herself miserableâ€"and surrounded by other similarly aged women who seemed to feel the same way. Determined to find answers, Calhoun started analyzing data and quickly found a pattern. In Why We Can’t Sleep, Calhoun delves into the social and cultural generational issues plaguing women as they enter middle age and offers pragmatic advice on how to find support and move forward. Uncanny Valley: A Memoir by Anna Weiner  (January 14, 2020) Anyone interested in the start-up culture of Silicon Valley will want to check out this debut from Anna Weiner, who left a job in book publishing in her mid-20s to join a big-data company in San Francisco. Weiner delivers a compelling and sharply written reflection of her experience in an industry that can be both promising and reckless. Part memoir, part insider’s report, this timely release serves as an intimate and candid critique of our digital age. Here for It: Or,  How to Save Your Soul in America  by R. Eric Thomas (February 18, 2020) Lin-Manuel Miranda has called Elle columnist R. Eric Thomas “one of the funniest writers on the Internet”â€"and it’s easy to see why. This collection of essays is both hilarious and poignant, chronicling his lifelong journey to self-acceptance, from struggling to fit into the white, suburban neighborhood of his childhood to reconciling his sexuality with his Christian faith. In this book, Thomas also reflects on his career as a writer, including the surreal experience of covering of the 2016 election, and how to redefine your own “normal” as the world becomes increasingly unpredictable. Yellow Bird: Oil, Murder, and a Woman’s Search for Justice in Indian Country by Sierra Crane Murdoch (February 25, 2020) In this gripping true crime story, Sierra Crane Murdoch recounts the story of Lissa Yellow Bird, a woman who was released from prison in 2009 only to find her home, North Dakota’s Fort Berthold Indian Reservation, totally changed. Three years later, a young white oil worker mysterious disappears from his reservation worksite. With few looking for him, Lissa sets out to find answers herself. Drawing on eight years of investigative reporting, Murdoch delivers a deft account not only of Lissa’s journey, but also of the long legacy of violence and exploitation on Native American reservations. Lady in Waiting: My Extraordinary Life in the Shadow of the Crown by Anne Glenconner (March 24, 2020) Ever wished you could witness some of the biggest moments in royal history? Get an insider’s account from this remarkable memoir written by a close member of the royal circle. Having served as a lady in waiting to Princess Margaret until her death in 2002 and as Maid of Honor at Queen Elizabeth’s coronation, Lady Anne Glenconner’s life has been marked with glamour, drama, and tragedy. In this genuine and candid work, Lady Anne recounts her story, offering some rare insight into the uniquely fascinating world of royal life. More Myself: A Journey by Alicia Keys (March 31, 2020) You know Alicia Keys as a critically acclaimed, Grammy-winning artist. But privately, the singer has struggled with heartache over her challenging relationship with her father and the many pressures of fame. In this intimate memoir, Keys candidly looks back at her own journey of self-discovery, from her childhood in New York to her rise as one of the most successful women in music. Joy at Work: Organizing Your Professional Life by Marie Kondo (April 7, 2020) Marie Kondo is back and once again encouraging you to find that which sparks joyâ€"this time, in your professional life. Teaming with Rice University business professor Scott Soneshein, Kondo offers anecdotes, research, and strategies for eliminating clutter in your office and establishing a happier and more productive work life.

Communism And Its Effects On America s Freedom And...

During the 1950’s, Communism was a major fear that Democratic nations such as America were afraid of because of its radical ideas. The actions taken due to the Red Scare and the rise of McCarthyism were necessary and completely justified to protect America’s freedom and government from Communist power. With an increase of Communistic nations invading other countries and forcing their ideas upon them there was an uproar of fear in the United States. The Domino Theory was a legitimate fear of if one nation falling to communism, every nation around it would fall as well. Focusing their attention to VIetnam especially, America increased military control in these regions. Multiple Legislative actions taken by the United States such as the creation of the HAUC and the Espionage and Sedition acts were necessary to stop threats to America’s freedom. The heated tensions between the Soviet Union and the United States during the Cold War contributed to the fear of an attac k from the East. Senator McCarthy’s convincing accusations lead to many accurate accusations as well as the rise of McCarthyism. Valid points were brought up about president Roosevelt’s New Deal policies of having capitalistic characteristics. While some actions did take away the civil liberties of some Americans, and were not always accurate, they were necessary to protect American Democracy, as well as the safety of the citizens. The Red Scare of the fifties was a very controversial time in American history. TheShow MoreRelatedCommunism : An Intriguing Theory899 Words   |  4 PagesCommunism could be an intriguing theory, especially to a poor developing country. A society where not one person is superior to another, where everyone shares products of their labor, and where the government provides for their people by providing employment and medical care for all. 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This paranoia eventuallyRead MoreThe Vietnam War1737 Words   |  7 PagesVietnam War, was to end the awful spread of communism. As Ho Chi Minh (North Vietnam’s communist president) fought to which spread North Vietnam’s political uses to Southern Vietnam. With this, the American Military Advisors sought to believe that a fall of Southern Vietnam to communist hands, would then lead to a total takeover of neighboring nations to fall under communism. The effect of the neighboring nations falling, was known as the â€Å"Domino Effect†. It all began when The Northern half of VietnamRead MoreThe Cold War Between The United States Of America And The Soviet Union1501 Words   |  7 Pagesof America and the Soviet Union was not only a battle of political conflict but also a rivalry to spread political ideology and influence worldwide. 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It affected many people from the fear of destruction, the wave of patriotism in people for their country, and to the waveRead MoreThe Development Of The Communist Manifesto In The European1083 Words   |  5 Pagesthe communist manifesto in the European region has led to the influencing of the different structures present in the area. The communist manifesto has resulted in the formation of holy alliances in the European region. It is due to the effects of the Manifesto that Marx developed the journal to address the issue. The importance of this journal is to highlight the sociological problems that have resulted from the manifesto. The fact that the manifesto has been highlighted by the European powers toRead MoreThe War Of The Cold War1123 Words   |  5 Pagesvision of the postwar prevented them from working together. Stalin wants to punish Germ any and make them pay outrageous sum of money for reparation. However, Truman has a different plan than Stalin. Truman believes that industrialization and democracy in Germany and throughout the world would ensure postwar stability. Stalin also wanted to spread communism throughout the country so Truman came up with Containment Policy in order to stop the spread of communism. Their different ideologies caused themRead MoreThe United States Involvement During The Vietnam War1729 Words   |  7 PagesThe war was fought between the communist Northern Vietnamese and the anti-communist Southern Vietnamese after the country was temporarily divided by the Geneva Accords. Americas entering of the Vietnam War proved to be an extremely controversial decision due to citizens belief that the United States reasons for intervention were unnecessary nor justified, and young teens were mainly drafted under the Selective Service Act. The death toll of nearly 3,595,000 people from the war was the re sult of years

Classrooms As Safe Spaces Protecting Transgender Rights...

Classrooms as Safe Spaces: Protecting Transgender Rights and Combatting Transphobia Through Pedagogy In the last decade, in particular, there has been an increasing awareness of the rights and struggles of the LGBTQ community.As a result, positive changes such as recognition and legalization of same-sex marriage, prohibition of discrimination based on gender identity/expression and sexual orientation, and greater rights for the LGBTQ community in public and private spheres have come about. However, the LGBTQ community is not a uniform entity; rather, it encapsulates a variety of distinct identities and lifestyles, many of whom are still fighting for their rights and freedoms. An example of this is the transgender community, which consists of, but is not limited to, individuals whose gender identity does not align with their biological sex. While dealing with transphobia at any age is devastating and harmful, for transgender teens, adolescents, and young adults, it can lead to lifetime of trauma.It can not only lead to feelings of marginalization, rejection, and isolation, but also the likelihood of mental illness, suicidal tendencies, substance abuse, risky sexual behaviors, and homelessness among trans adolescents and teens. Since adolescence is an impressionable time for many, being teased or bullied at school for being different can cause a deep-seeded sense of trauma. Given that we, as individuals within group settings, are always â€Å"performing† gender, according to

Business Report Qantas Airways Free Essays

BUSINESS REPORT ON QANTAS AIRLINES Hasblady Leon Ramirez (Sofia) Student No 31278 Class: BAE 10 16th January 2013 TABLE OF CONTENTS EXECUTIVE SUMMARY3 1. INTRODUCTION4 2. QANTAS ETHICAL EVALUATION5 2. We will write a custom essay sample on Business Report Qantas Airways or any similar topic only for you Order Now 1. Airlines Safety as an Ethical Issue5 3. QANTAS SHARE PRICE EVALUATION6 3. 1. Share Price Definition6 3. 2. Share Price Behavior 20126 3. 3. Share Price History7 4. Recommendation8 REFERENCES9 EXECUTIVE SUMMARY The aim of this report is to evaluate whether Qantas airways is a suitable company for ethical investment. Firstly, Qantas has currently been incurring in an ethical issue, because it has reduced in almost 50 % its staff in order to obtain better profits, however, the flight safety has been affected due to this maintenance downsizing, also Qantas share price analysis determines that although the stock had a downturn three years ago, it has begun to rise now. However, the result of this report is that, Qantas is not an appropriate company to invest now due to the low share price behavior and maintenance airplane’s issue. 1. INTRODUCTION The purpose of this report is to evaluate whether Qantas airways is a suitable company for ethical investment. This evaluation is divided in two aspects, ethical investing and share price performance in order to make a recommendation to clients. Currently, companies have begun to make decisions on basis to moral assumptions such as, social consideration, environmental concerns and ethical reporting with the purpose of selecting ethical investment and achieving a competitive financial return (Schwartz 2003, p. 95). According to Michelson, this recent behavior is called ethical investment (Australia and United Kingdom) and socially responsible investment ( United States) and this is a main topic in the financial industry due to the gained importance during the last years (2004, p. 1). Qantas is the largest domestic and international airline that was established in Australia in 1920. Now, Qantas is a business group of customer’s transportation, which is formed by two complementary airline brands (Qantas and Jetstar). The business group employs 35,700 people and 93% of this amount is based in Australia (Qantas 2012). This report is divided in three main points, firstly, analyzing an ethical issue about safety flight on base of airplanes maintenance. Secondly, evaluating the share price history and how the share price behavior, and finally, it give a recommendation to the shareholders in order to acknowledge the company. 2. QANTAS ETHICAL EVALUATION This report discusses the airline safety in terms of maintenance. Currently, companies search to increase profits and reduce costs; and a common way is a downsizing in an operational process. Qantas reduce the maintenance staff to obtain a better performance and profits; however it threatens the passenger integrity due to the low performance maintenance into airplanes. 3. 1. Airlines Safety as an Ethical Issue Qantas has reduced â€Å"500 engineering jobs in Sydney and Victoria† (Herald Sun 2012, para. 1). In Sydney that happened because the airline believes that, it had an oversupply of line maintenance engineers. Lyell Strambi, who is Chief Executive of Qantas domestic operations, said that, the cost of its heavy maintenance was more than 30% higher than others airlines, and Qantas needed to close the difference to ensure its â€Å"future viability† (Herald Sun 2012, para. 17). The Australian Licensed Aircraft Engineers Associations said that, the airplane maintenance has been affected by changes and reductions of maintenance staff without previous risk analysis (Crikey 2012, para. 2). For example, in a Qantas flight last year was found a ? fatigue crack? n a turbine on the Boeing 747-400 that led to an explosion in the aircraft motor while it was in the air, the aircraft landed safely and all passenger were safe (News. com. au, 2012, para. 2-3). The company is the company is reducing costs towards improving profits and make the company viable in the future; however the decision to reduce maintenance costs and staff have affected flights safety thereby leaving at unnecessary risk to pa ssengers. Finally, Qantas is currently involved in significant safety problems that have directly affected the client? s decision making. 3. QANTAS SHARE PRICE EVALUATION . 2. Share Price Definition The share price and the investment are the methods connected to â€Å"neoclassical investment models†, those models study the options that the company has to improve the performance in the future (Andersen, Subbaraman 1996, p. 1). The share price model is to analyze all aspects which cluster information about the future expectations of a company (Andersen, Subbaraman 1996, p. 1). 4. 3. Share Price Behavior 2012 In terms of evaluate the Qantas share price, this report has been made on the base of price variances which are illustrated in the below chart. It can be analyzed through to the share market behavior and the period of time. Chart No. 1 (Australian Securities exchange 2013) http://www. asx. com. au/asx/research/companyInfo. do? by=asxCodeasxCode=QAN The graph number 1 present Qantas share price behavior over the past year. On the graph, the Y axis indicates the share price in points and the Y axis represents the period of time in months. The graph shows that, since beginnings of 2012 the QAN (Qantas Airways) share price rose slightly in 1. 800 points in March, then in April and May the share price fell slowly in 1. 00 points, after in mid-June, due to the massive downsizing, the share price decreased to reach less than 1000 points, however, in the end of June the price increased rapidly in almost 1. 200. After the events in June, the share price has been slightly increasing over the six last months, and the current price is almost 1. 600 points. 4. 4. Share Price History This section of the report discusses the historical beh avior of Qantas share price over the past five years. On the graph, the Y axis indicates the share price in points and the Y axis represents the period of time in years. Chart No. 2 (Australian Securities exchange 2013) http://www. asx. com. au/asx/research/companyInfo. do? by=asxCodeasxCode=QAN The graph reports that, the top of QAN share price over the last five years was in February 2008, when the price was above 4. 500 points. Then between 2008 and beginnings 2009 the share price was decreasing slowly until 1. 500 points, due to the economic crisis world, which affected the whole world stock market, since 2009 to in late 2010 the price increased and got the maximum in 3. 000 points. In late 2010, Qantas had its first restructuring and started having maintenance failures and safety, which caused the share price fall during the two years and it dropped by about 1. 000 points, however it is beginning to rise now. 4. Recommendation Qantas is one of the major companies in Australia, and also is an important part of the airline global industry. However, this report suggest that, it is not an appropriate time to invest in this company, because the company is going through financial problems that have generated downsizing maintenance problems incurred in the flight safety. Shares price also has fallen due to the lack of credibility of the company by the market. Although the share price is rising slowly at the beginning of this year, the security problem continues. In addition, as suggestions, company should organize priority the airplanes maintenance process, in order to ensure aircraft operation and keep safe the people life. Finally, in relation with Qantas share price, it has been fluctuating in the periods where the company has made decisions without measuring risk, such as maintenance downsizing and outsourcing, therefore, company must take into account the future consequences of its aking decisions. REFERENCES Andersen, M, Subbaraman, R, 1996, Share prices and Investment, Economic Analysis Department, Reserve Bank of Australia, December, pp. 1-2. Crikey, 2012, Real issues behind Qantas maintenance job loss claims, [online], Available: http://blogs. crikey. com. au/planetalking/2012/11/08/real-issues-behind-qantas-maintenance-job-loss-claims/, 15 January 2013. Herald Sun, 2012, Bitter blow as Qantas cuts 500 jobs, [online], Available: http://www. heraldsun. com. au/news/victoria/bitter-blow-as-qantas-cuts-500-jobs/story-fn7x8me2-1226361597334, 21 May 2012. Michelson, G, Wailes, N, Van Der Laan, S,  Frost, G, 2004, Ethical Investment Processes And Outcomes, Journal of Business Ethics, vol. 52, no. 1, June, pp. 1-10. News. com. au, 2012, Safety investigator finds cracked blade caused Qantas emergency, [online], Available: http://www. news. com. au/travel/news/fractured-blade-to-blame-for-qantas/story-e6frfq80-1226540282165, 18 December 2012. Qantas Airways, 2012, Our Company, [online], Available: http://www. qantas. com. au/travel/airlines/company/global/en Schwartz, M, 2003, The Ethics of Ethical Investing, Journal of Business Ethics, vol. 43, No. 3, March, pp. 195-213. How to cite Business Report Qantas Airways, Essay examples

The Leslie Fay Companies Essay Essay Example

The Leslie Fay Companies Essay Paper Background The Leslie Fay Companies was a women’s dress maker established by Fred Pomerantz. a former Women’s Army Corps uniform shaper during World War II. Despite the â€Å"volatile and intensely competitive† ( Knapp 34 ) nature of the industry. Leslie Fay grew to hold the 2nd largest one-year gross revenues compared to any of the other publically owned women’s dress makers. merely behind Liz Claiborne. Fred Pomerantz hired Paul Polishan for a place in the accounting section where Polishan befriended Pomerantz’s boy. John. After Fred Pomerantz’s decease in 1982. John Pomerantz became CEO and president of the board. holding been president of the company and supervising operations ten old ages prior. Polishan was besides promoted and became the company’s CFO and senior frailty president of finance. Although Leslie Fay’s central office was situated in New York City’s garment territory. the accounting office was off-site in Wilkes-Bar re. Pennsylvania. Polishan was known for his â€Å"strict and autocratic† ( 33 ) regulation in this location. demanding much from his employees and digesting really small. In Polishan’s absence. the accounting office was run by Donald Kenia. the company accountant. Contrary to Polishan’s demeanour. Kenia was mild and soft-spoken. We will write a custom essay sample on The Leslie Fay Companies Essay specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Leslie Fay Companies Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Leslie Fay Companies Essay specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The women’s dress industry suffered during the late 80s and early 90s due to the â€Å"casualization† ( Knapp 35 ) of American manner every bit good as the economic recession. The desire for more casual-looking apparels led to worsening gross revenues of frocks and other high-end garb. The recession besides caused â€Å"many consumers to restrict their discretional outgos. including the purchase of new clothes† ( 35 ) . This was a major blow to Leslie Fay’s chief customers—department shops. When some of these section shops filed for bankruptcy. Leslie Fay incurred material losingss. â€Å"In October 1991. John Pomerantz announced that Leslie Fay had achieved record net incomes for the 3rd one-fourth of the year† ( 36 ) . These net incomes were achieved despite the disabling economic state of affairs and John Pomerantz’s antique concern patterns that shunned â€Å"extensive market testing† ( 35 ) and the usage of computing machin es. While many rivals were financially fighting. Leslie Fay was turning. On January 29. 1993. Polishan informed Pomerantz of a major fiscal issue ; seemingly Kenia had â€Å"secretively carried out† ( Knapp 36 ) an accounting fraud for several old ages. exaggerating net incomes â€Å"by about $ 80 million from 1990 through 1992† ( 33 ) and subjecting â€Å"approximately $ 130 million of fake entries† ( 39 ) . Leslie Fay’s stock list was inflated. minimizing cost of goods sold and hence increasing the gross net income border. In add-on to the forging of â€Å"inventory tickets for nonexistent products† ( 39 ) and the fiction of â€Å"large sums of fake in-transit inventory† ( 39 ) . orders were prerecorded. price reductions were omitted from fiscal statements. and disbursals and liabilities at the period-end were non reported. Almost all of Leslie Fay’s diary entries associating to be were tampered with in some manner. Donald Kenia claimed full duty for the fraud. but because of his compliant nature and low bets in the company. many believed this to be false. Polishan. as CFO. â€Å"was straight responsible for the unity of Leslie Fay’s accounting records† ( Knapp 37 ) . and since he ruled the accounting office with an Fe fist. he was thought to hold played a greater function in the cozenage. Kenia lacked an obvious inducement in orchestrating this large-scale fraud since he was non compensated based on net incomes. but other executives. such as Polishan and Pomerantz. w ho owned a important sum of portions in company stock. did benefit. They received â€Å"substantial year-end fillips. in some instances fillips larger than their one-year wages. as a consequence of Kenia’s alleged scam† ( 34 ) . Pomerantz and Polishan claimed to hold known nil about these accounting mistakes. After the fraud was uncovered. the audit commission investigated and released a study that exonerated Pomerantz ( 40 ) . but Kenia subsequently confessed. in resistance to his original testimony. that Polishan â€Å"had overseen and directed every major aspect of the fraud† ( 42 ) . Polishan and Kenia were convicted. In 1997. Leslie Fay was ruled to pay $ 34 million in colonies and filed for bankruptcy. but the company was able to return to a â€Å"profitable condition† ( 42 ) before being bought out in 2001. The function of Leslie Fay’s external hearer in the thick of this fraud of course comes into inquiry. BDO Seidman had been Leslie Fay’s â€Å"audit house since the mid-1970s and issued unqualified sentiments each twelvemonth on the company’s fiscal statements† ( Knapp 39 ) . After the disclosure of the fraud. BDO Seidman withdrew these unqualified sentiments for 1990 and 1991. The accounting house took on a similar defence to that of John Pomerantz. claiming themselves as victims of misrepresentation. Leslie Fay shareholders sued BDO Seidman for foolhardy auditing in 1993. Leslie Fay’s fiscal statements had been â€Å"replete with ruddy flags† ( 40 ) . lending to the cases. These pending legal conflicts led to questionable hearer independency. therefore doing BDO Seidman to vacate as Leslie Fay’s hearer. Numerous misstatements in about all cost and liability line points leads to the inquiry of whether the deficiency of sufficient internal controls was mostly responsible for the fraud and if the external auditor’s failure to look into Leslie Fay’s internal controls caused them to lose such mistakes. Business Risk Assessment Nature of the Entity The Leslie Fay Companies was a publically traded house on the New York Stock Exchange in the concern of fabricating women’s dress. From its origin. Leslie Fay’s focal point was on bring forthing â€Å"moderately priced and conservative frocks for adult females aged 30 through 55† ( Knapp. 34 ) . In 1982. John Pomerantz. boy of Fred. became the company’s CEO and president of the board following a leveraged buyout after the decease of his male parent. The steadfast re-listed on the NYSE in 1986. Pomerantz. Polishan. and other company executives held big parts of company stock. and as a consequence. they had a direct fiscal involvement in the continued fiscal success of Leslie Fay. Top executives were besides the receivers of frequent and big year-end fillips. In some instances. these fillips were greater than their one-year wages. Structurally. the company CFO and accountant. Polishan and Kenia. had big overruling powers over fiscal informations. Internal controls were badly missing. leting direction to skew about all minutess related to cost. Polishan â€Å"‘dominated’ Kenia through bullying and fear† ( Knapp 42 ) . converting Kenia to blow up Leslie Fay’s gross borders. Until the fraud was uncovered. Leslie Fay produced the 2nd largest net incomes in the industry. puting the company in the leaderboard. Industry. Regulatory. A ; external factors To understand the place of Leslie Fay in the late eightiess and early 1990s. it is of import to look at the province of the women’s manner industry at that clip. Leslie Fay’s cardinal rivals included Oscar de la Renta. Donna Karan. and others. However. the firm’s top challenger was Liz Claiborne. â€Å"the merely publically owned women’s dress maker in the late eightiess that had larger one-year gross revenues than Leslie Fay† ( Knapp 34 ) . The firm’s chief clients. which were besides shared by its rivals. were the big section shop ironss. Several industry tendencies contributed to economic adversity. The most impactful of these tendencies was the â€Å"casualization† ( Knapp 35 ) of America. This was a tendency that had developed a few old ages before and was in full force by the late ’80s. Millions of consumers began to eschew the traditional impressions of women’s manner and opted alternatively to dress in more comfy vesture. This motion began with younger adult females but so hit adult females in the 30 to 55 year-old section. Leslie Fay’s mark market. More specifically. this displacement toward insouciant vesture significantly impacted women’s frock gross revenues. In the early 1970s frock gross revenues began to worsen as a consequence of the popularity of pants suits. and by the late 1980s the displacement toward casualwear had for good damaged the gross revenues of frocks. All of this was bad intelligence for Leslie Fay. Since they were a maker of â€Å"stylishly conservative frocks. † ( Knapp 34 ) they were stuck in a current towards insouciant vesture with a concern theoretical account trying to swim upstream. The civilization of deregulating in the United Sates that began in the seventiess. took off in the 1980s. and flourished in the 1990s and early 2000s had an affect on the fiscal and accounting sections of many companies. Specifically sing accounting. the PCAOB did non be until 2002. This meant the deficiency of a regulative organic structure to supervise the creative activity of and conformity with accounting and auditing criterions. In add-on. jurisprudence did non yet necessitate the modern. SOX-created version of the audit commission. responsible for the hiring and fire of the external hearers among other things. The CFO and CEO were non required to personally certify ( with a signature ) to the truth of the company’s fiscal statements. giving them less answerability. The overall deficiency of answerability for CFOs and CEOs and the more mellow attack that hearers took during that clip period enabled Leslie Fay’s dirt to go through through unnoticed for that long. A assortment of external factors influenced Leslie Fay. Most of import was the recession of the late eightiess and early 1990s. The recession merely heightened the jobs in the women’s manner industry. as consumers began to watch their disbursement and spent less on new apparels. There was an overall economy-wide diminution in retail disbursement. which hurt concern for the major section shops that were Leslie Fay’s clients. As a consequence of weak retail gross revenues. many section shop ironss were forced to either merge with rivals or to neutralize. This injury Leslie Fay because the lasting section shops. with which the house did concern. â€Å"wrangled fiscal grants from their suppliers† ( Knapp 35 ) . As Leslie Fay’s primary clients took hits during the economic recession. the fabrication house besides suffered great losingss. Internal Control From the information presented in the instance by Knapp. it is apparent that Leslie Fay did non hold an effectual system of internal controls. First and foremost is the fact that the firm’s accounting offices were located 100 stat mis off from corporate central office. Bing this far off from the Garment District in Manhattan would hold made it hard for internal and external hearers to hold a complete apprehension of how Leslie Fay’s concern operated since they could non physically detect it. In add-on. most accounting forces located in PA could non discourse issues face-to-face with people in corporate central office. Paul Polishan made frequent trips to New York. nevertheless he was finally responsible for orchestrating the accounting fraud. and his bossy leading manner exacerbated the issue. Anyone who asked for records had to instantly reply to Polishan. supplying a ground why they needed to cognize that information. This gave Polishan the possible ability to cover up information before anyone else could see them. Leslie Fay besides had a deficiency of any type of information engineering system. In an age where it had become platitude in the industry to utilize computing machine webs to supervise day-to-day gross revenues. the house was still doing calls to clients on a hebdomadal footing to enter gross revenues Numberss ( Knapp 35 ) . This made it easier to pull strings gross revenues and stock list Numberss towards the terminal of accounting periods. particularly when sing Polishan’s strong belief. because a deficiency of IT meant less-precise Numberss. In add-on. the accounting offices in PA were non up to rush with modern informations processing ; instead they did more work by manus. Last. the extent of the influence that Polishan had over Kenia. the accountant. and finally the full accounting procedure. indicated a deficiency of cheques and balances within the system. Knapp provinces in the instance that Kenia and other subsidiaries followed any order given by Polishan merely due to his bullying factor. A good system of internal controls would guard against this. a cardinal agreement Leslie Fay clearly lacked. Aims. Strategies. A ; Business Risks Leslie Fay had received ailments from consumers that its vesture line was excessively â€Å"old-fashioned. † â€Å"matronly. † and â€Å"overpriced† ( Knapp. 36 ) . Given these fortunes. the house should hold sought to revamp their merchandise line and industry more voguish vesture while remaining true to the basic thoughts about manner that Leslie Fay was known for. Unfortunately for the company. John Pomerantz insisted on making concern the antique manner and relied on himself and his interior decorators to calculate manner tendencies. This might hold worked had Pomerantz known what the overall tendency in the women’s manner industry was. but he did non do usage of market proving to see what adult females were truly looking for in vesture. The house faced many concern hazards during this clip period. The recession heightened competition as many houses were all aiming the same market section that was passing less on new vesture. There was besides force per unit area to get the better of Liz Claiborne as the gross revenues leader in the industry. Leslie Fay was besides pushed to develop trendier vesture in a changing set of consumer demands. The settlement and amalgamations of section shops led to many write-downs and loss of income for the fabrication house. Leslie Fay was besides capable to less-advantageous gross revenues footings forced upon them by the shops such as longer payment footings. more indulgent return policies. and increased fiscal aid ( Knapp 35 ) . As ever. the force per unit area is on maintaining costs down in the market they are in. Since they aimed for reasonably priced vesture. the house needed to drive down costs in order to do a net income on their ware. The house had to maintain gross revenues and net incomes up all while factoring in these alterations in the economic system and in their specific market place. Leslie Fay faced the force per unit areas of run intoing analysts’ projections. since they were a publically traded company. If they did non run into projections. they were capable to a loss of investor capital. Healthy fiscal Numberss were besides of import to keep for the interest of maintaining creditors happy. The house needed funding from both loaners and investors in its common stock to back up the design and industry of its vesture. Entity Performance Measures The province of the economic system and industry in the late eightiess and early 1990s led to cut down disbursement. which would hold translated to take down gross revenues and net incomes for most houses in the manner industry. However. as noted in the instance and as seen by Leslie Fay’s financials. the house was accomplishing record net incomes despite a slow retail industry ( Knapp 36 ) . Some cardinal fiscal ratios and observations are presented in Exhibit 1. An analysis of these ratios shows that. harmonizing to Leslie Fay’s doctored fiscal statements. they were more liquid than the industry norm. but less solvent. They had lower stock list. histories receivable. and plus turnover ratios than the industry. and the ages of their stock list and histories receivable were higher than the industry norm. Their gross border per centum was about on par with industry norm. nevertheless they showed a higher net income border on their gross revenues ( by 1. 31 % ) every bit good as a significantly higher ROA ( 9. 79 % higher ) . Their Roe was lower than the industry norm. A higher net income border on gross revenues. together with reduced gross revenues from 1990 to 1991. suggests that Leslie Fay manipulated cost-side entries. Fraud Triangle Incentive/Pressure Changes in consumer behaviour of the women’s dress industry pressured Leslie Fay as it suffered a diminution in clients in the 1970s and 1980s. During this clip. manner tendencies were switching to go more insouciant. and new manners included more comfy. well-worn garments like denims and jerseies. Even Leslie Fay’s mark market of adult females between the ages of 30 and 55 were dressing more casually and buying less frocks. As tierce of Leslie Fay’s entire gross revenues are attributed to frocks. Leslie Fay felt the force per unit area of the alteration in the dress industry ( The Leslie Fay Company Inc. History ) . It was besides affected by the economic recession of the late eightiess and early 1990s. The company’s major clients. section shop ironss. experienced a diminution in retail disbursement due to this recession ( Knapp 35 ) . The fiscal strain on section shops caused them to demand fiscal grants from providers like Leslie Fay. The company was asked to let the section shops longer payment footings and more indulgent return policies. and to supply more fiscal aid for in-store shows. booths. and apparel dress shops ( Knapp 35 ) . Retailers criticized Leslie Fay of fabrication apparels that were overpriced and antique. The company was forced to give discounts to sweeping clients that could non sell all of the dress they had purchased. Pressure from retail merchants created an environment that burdened Leslie Fay with happening new ways to maintain up net incomes. Executive compensation is another inducement to perpetrate fraud. Executives including Pomerantz and Polishan had significant involvements in the Leslie Fay Companies as they owned big blocks of the company’s stock. In add-on. executive fillips were highly generous. sometimes transcending one-year wages ( Knapp 34 ) . Top executives whose fiscal involvements were to a great extent invested in Leslie Fay through stock ownership and these big fillips were more likely to perpetrate fraud for their ain personal benefit. Opportunity A important facet of Leslie Fay’s operations was the geographical difference between corporate central offices and the accounting offices. Corporate central offices were located in Manhattan. while the accounting offices were 100 stat mis north-west in Wilkes-Barre. Pennsylvania. Paul Polishan dominated the Wilkes-Barre office. nicknamed â€Å"Poliworld. † as the CFO and senior frailty president of finance. This physical separation between the accounting section and other executives and top direction created an chance for fraud. Finance and accounting employees were non as closely supervised as those in the corporate central offices due to this geographical gulf. This besides limited the internal controls that could be implemented over the accounting section ( Knapp 33 ) . Public accounting houses were non yet regulated by Sarbanes-Oxley. making an chance for Leslie Fay Companies to perpetrate Fraud. SOX mandates that public companies obtain an incorporate audit. including an audit of fiscal statements and internal controls over fiscal coverage ( Messier 43 ) . BDO Seidman was non required to carry on an audit of internal controls as there was no bing ordinance. This means that management’s actions associating to fiscal coverage were non needfully being investigated by its external hearer. This deficiency of ordinance affected the audit processs performed by BDO Seidman. which left the internal control system unchecked. Attitude/Rationalization Paul Polishan’s ruling personality made him a powerful influence over his subsidiaries. particularly Donald Kenia. Polishan purely ruled the Wilkes-Barre offices and when senior directors from the corporate central office asked him for fiscal information he frequently demanded the ground they needed the information ( Knapp 33 ) . This defensiveness which should hold been a ruddy flag created an environment where people were hesitating to oppugn Polishan. The relationship between Kenia and Polishan was besides closely examined during the probe of Leslie Fay. Kenia claimed to hold been â€Å"dominated† by Polishan through bullying and fright ( Knapp 42 ) . Polishan’s dashing personality allowed him to intimidate Kenia and his staff into distorting fiscal minutess and commit fraud. Polishan’s laterality at Leslie Fay put a strain on internal controls. Case Questions 1. A common size balance sheet and income statement. every bit good as cardinal fiscal ratios are detailed in Exhibits 2 through 4. Key ratios that should pull hearer attending include stock list turnover and age of stock lists. histories receivable turnover and age of histories receivable. gross border. and net income per centum. The low and continuously diminishing stock list turnover and similar histories receivable turnover that the ratio spreadsheet shows means that stock list is sitting for 85. 68 yearss in stock before it is sold. and when it is finally sold Leslie Fay is non having the money owed to them for 56. 33 yearss. While this is to be expected in the recession that the company was confronting during this clip period. it is significantly longer than the industry norms of 53. 7 yearss for stock list and 45. 5 yearss for histories receivable. This should pull hearer attending to the stock list and histories receivable lines on the balance sheet. doing certain they are valued right and wholly. including appropriate allowances. With clients purchasing less and taking longer to pay for it. how does the company maintain the steady gross border and net income border in line with and transcending industry norms. severally? This is the cardinal inquiry that should hold drawn auditor attending and where hearers should hold exercised their professional incredulity. Decreasing stock list turnover and histories receivables turnover is to be expected in difficult times when clients want to purchase less and some are even traveling insolvent. but more attending should hold been focused on how Leslie Fay managed to transcend the remainder of the industry in net income border ( Leslie Fay’s 3. 5 % compared to the industry norm of 2. 2 % ) under these conditions. 2. In add-on to the balance sheet. income statement. and fiscal ratios. an hearer would wish to hold other cardinal fiscal information to execute the existent audit. For the hearer to make up ones mind what extra fiscal information was needed. he would foremost execute a comparing similar to that in Question 1. which evaluated the hazards on the fiscal statements. particularly in relation to industry norms. Through this analysis. the hearer would hold decided that physical stock list counts and substantial analysis of the stock list would be of import information to hold because Leslie Fay is a merchandising company whose concern wholly relies on its stock list. During a recession. it would besides be of import to verify gross revenues and the gross border. to guarantee that gross border is really higher than industry norms as the company claims. The hearer should scan for big and unusual entries. particularly at the terminal of the period. to guarantee that Leslie Fay is non merely fabricating extra stock list at the terminal of the period to convey down the cost of goods sold. Hearers should besides corroborate gross revenues with the clients both for happening and completeness of the minutess that were recorded. During this cheque it would be of import to read gross revenues contracts to guarantee that gross was recognized consequently. Finally. the hearer would necessitate to verify that Leslie Fay included a big adequate allowance for dubious histories. During this period there was a recession and many clients were unable to pay or were traveling out of concern. a major concern for company. 3. When measuring a company’s industry. it is of import to observe the current economic system and the peril of the industry itself. Even before the recession hit. Leslie Fay was non large on alteration ; it did concern without the usage of much engineering or consumer trailing. even in the accounting sections. In the extremely volatile manner industry. how did Leslie Fay header with invariably altering manners and gustatory sensations? They tried to foretell altering manners on their ain. without any trailing of consumer penchants to assist steer them ( Knapp 35 ) . Leslie Fay was taking a hazardous attack to a hazardous market. As the economic system declined. this manner industry merely became more hazardous. The industry was clearly in a ruin due to the recession and the culture’s motion off from frocks. both of which caused a lessening in how many frocks were purchased by retail clients. In this sort of market. it would be of import for the hearers to non merely garner non-financial information about Leslie Fay and the manner industry. but they should besides garner information about Leslie Fay’s clients. the large section shops. to find whether or non they will be able to pay for outstanding histories receivable. This information would assist find an appropriate allowance for dubious histories. which would act upon the sum of gross revenues recorded in the income statement and the histories receivable balance on the balance sheet. The downward force per unit area on the industry would greatly increase the inducements and force per unit areas to keep good financials. which in bend. would increase the hazard of fraud. All of these factors should act upon the type and measure of the trials performed by the hearers. Hearers should corroborate purchases with clients. and inquire interior and outside the house for how Leslie Fay merchandises fit in the market. The downswing of the economic system should besides increase the proving done to the gross revenues account to guarantee that they really happened to reply this inquiry: How did Leslie Fay net income when all other companies in the market were losing gross? 4. As antecedently mentioned. Paul Polishan played a really dominant function in the accounting and finance sections in add-on to his subsidiaries at Leslie Fay. When there is such a dominant individual at the top. particularly one that has great control over subsidiaries. the dependability of the fiscal information lessenings. The dominating figure decreases the cheques and balances within the company that guarantee right information. which increases chances for fraud. Hearers need to acknowledge this figure and program consequently to ask about company information from both internal and external independent beginnings. maintaining in head that the dominant individual could besides compromise internal enquiries. The hearers must acknowledge the important force and seek to analyze the facets that he had definite control over deeper. The hearer should seek out the motives that the dominant participant may hold and analyze countries that he would desire to hold altered. For illustration. Polishan’s personal income was greatly influenced by stock monetary value. significance that he would desire to blow up net incomes to increase market value. Hearers must. therefore. lessening sensing hazard and sample potentially affected histories more. The hearer should so take the clip to carefully measure direction averments about completeness. rights and duties. rating and allotment. and being of history balances and minutess that have taken topographic point. Overall. the hearers need to get down to scrutinize a company with a dominant figure like Polishan with a good degree of professional incredulity. recognizing that the tone at the top decreased the internal controls and they will hold to increase the sum of proving and asking done to acquire an accurate image of the company’s financials. 5. Independence and objectiveness are two of the most of import external hearer features. The SEC ruled that BDO Seidman’s independency had been jeopardized by the cases that named BDO Seidman and Leslie Fay as suspects because of the deficiency of objectiveness that the accounting house would hold if they performed the following year’s external audit. Because the shareholders’ case against them put BDO Seidman and Leslie Fay on the same side. BDO Seidman now had a personal interest in Leslie Fay’s fiscal statements and was no longer independent of the firm’s financials. If BDO Seidman were to execute the audit. the stockholders would non be able to trust on or swear the fiscal statements ; they would presume that BDO Seidman would change the auditing procedure to their benefit. The case was non the lone object of conflicting involvement between BDO Seidman and Leslie Fay. GAAS # 2 provinces that an external hearer must be independent in the manner of thought. After the fraud was revealed. BDO Seidman retracted two unqualified sentiments for the past two old ages and publically stated that they were victims of the Leslie Fay fraud. faulting Leslie Fay’s upper direction for the full strategy. This blasted game back and Forth between Leslie Fay and BDO Seidman clearly eliminates any possibility for hearers to travel into a Leslie Fay audit with an independent mentality. Extra Questions 1. The fraud would hold been more noticeable to the external hearers had SOX been implemented at that clip. Howard Schilit. a forensic accounting specializer. â€Å"suggested†¦that Leslie Fay’s fiscal informations had been full with ruddy flags† ( Knapp 40 ) . bespeaking that adequate abnormalities were present to warrant farther examination. One of the largest constituents of SOX is the probe of internal controls. Such an probe would hold helped the external hearers realize that the information they were given was non to the full dependable. BDO Seidman should hold evaluated the cheques in Leslie Fay’s system. doing certain that neither Donald Kenia. the accountant. nor Paul Polishan. the CFO and senior frailty president of finance. were able to fiddle with the fiscal informations without ordinance. The deficiency of any kind of IT system due to the CEO’s peculiar affinity to â€Å"old-fashioned† ( Knapp 35 ) tradition besides gave more power to executive management—they had absolute control over the fiscal informations without electronic grounds of fiddling. The legion ruddy flags described by Schilit make it evident that BDO lacked professional incredulity in this instance. ensuing in the unqualified audit studies for Leslie Fay’s fiscal statements. 2. The proper executing of audit trials would hold enabled BDO Seidman to bring out the accounting mistakes. Inquiry of Leslie Fay forces would hold rapidly indicated that Polishan had absolute control over the fiscal informations. doing the hearer to so prove internal controls. An experimental review of the application of internal controls should hold been administered so BDO Seidman could see what checks Leslie Fay had in topographic point to modulate their fiscal informations. If this was decently observed. executive management’s control over the fraud may hold been revealed. Many substantial processs could hold been implemented to further uncover mistakes. A trial of inside informations would hold shown mistakes in all the major line points sing cost and liabilities. Substantial trials of single minutess. such as with purchase bills. could demo that the stock list reportedly in-transit did non really exist. A walkthrough and review of paperss and activities would uncover that much of the stock list reported was falsely recorded because there would be no organic procedure in which existent stock list entered the warehouse and was recorded—since they were fabricated. the perceiver would hold recognized this cardinal measure. A trial of history balances would besides demo that the stock list on manus did non fit up to the reported sums. Substantial analytical processs are cardinal in this instance. Due to hapless economic fortunes and rival battles. a ruddy flag should hold been raised when Leslie Fay continued to describe net incomes growing but failed to explicate how. Since fillips were tied to net incomes. executives had inducement to blow up their Numberss. Pomerantz’s â€Å"total wage and fillips of â€Å"3. 6 million [ was ] three times more than the 1991 compensation of Liz Claiborne’s CEO. whose company reported gross revenues more than double those of Leslie Fay’s† ( Knapp 40 ) . BDO should hold compared Leslie Fay to other companies in the women’s dress industry. observing differences in tendency lines. The elephantine fillips may hold indicated that company operations were non management’s largest concern. Decision The accounting fraud engineered by Paul Polishan. CFO and SVP of finance at Leslie Fay. doubtless tarnished the repute of Leslie Fay and its direction. every bit good as BDO Seidman as its hearer. Many factors finally contributed to the $ 80 million accounting fraud that was eventually uncovered in the early 1990s. One of the major factors included a terrible deficiency of internal controls. No employee would contend the domineering Polishan. particularly the second-in-command at the office. Donald Kenia. the accountant. In add-on. whenever an employee or direction at the corporate central office would bespeak fiscal information from Polishan. he would oppugn them about why they needed the information. which should hold been a mark that possibly something illegal was go oning behind the scenes. Not merely was there a big communicating job between the executives of the company. but besides the deficiency of transparence between executives was amazing. as other executives were in the d ark refering the fraud. Leslie Fay’s continued success in a fighting women’s manner industry should hold sparked BDO Seidman to look more closely into the fiscal information provided by Polishan. and possibly carry on substantial analytical processs on a more elaborate degree. BDO Seidman besides should hold actively compared Leslie Fay to its close rivals. and the industry as a whole. to see that cardinal fiscal ratios did non fit the general tendency. The chance and inducements for Paul Polishan to perpetrate fraud were both present. The physical distance of Polishan from central offices opened up a big chance for him to perpetrate fraud. In add-on. he had an employee willing to take the autumn for him when the fraud was uncovered. With this chance. Polishan was able to hedge bad fiscal statements that the worsening women’s manner industry would hold given him and increase his fillip. which was tied straight to the net incomes of Leslie Fay. Had the Sarbanes-Oxley ( SOX ) statute law been implemented prior to the accounting dirt at Leslie Fay. the fraud would hold been more easy noticeable. SOX would hold held executives accountable for the truth of fiscal statements The external hearer would besides hold been held to a higher criterion of supplyi ng sensible confidence as to the truth of the company fiscal statements. Even though BDO Seidman merely provided an â€Å"unqualified opinion† on the truth of the statements. SOX would hold prevented BDO Seidman from being so careless in their auditing of Leslie Fay. Last. SOX would hold required an in-depth reappraisal of internal controls. which Leslie Fay was missing. The deficiency of internal controls at Leslie Fay. and BDO Seidman’s ignorance of this job. was a major part to the deceitful accounting strategy that took topographic point. If the external hearer. BDO Seidman. had performed a proper reappraisal of Leslie Fay’s internal controls. they would hold uncovered a complete deficiency of said controls. including a deficiency of cheques and balances between top direction. This lack caused a major gulf between the CFO and other company executives. with the critical job being information dissymmetry between the two parties. The accounting offices of Leslie Fay were located a 100 stat mis from the corporate central office. fostering the spread between the CFO and other top direction. and non leting the accounting squad to physically see the operations of the company. Additionally. Leslie Fay lacked any type of information engineering system. and alternatively tracked day-to-day gross revenues and stock list counts by manus. This allowed for easier use of informations linked to the net incomes procedure of the company. As seen through the state of affairs at Leslie Fay. strong internal controls. and the ordinance of these controls. is indispensable to the uncovering and bar of fraud within any company. The effectivity of the internal controls should be tested by the external hearer. every bit good as sporadically evaluated by executives of the company.