Recommendation Report - Essay Example

The two investors sued Bright Light for failure to honor their contract and fraudulently obtaining money from them. With evidence and witnesses having presented and appeared before the duly, the court ordered that I should conduct a thorough investigation and auditing of Bright Light company. In interviewed Thomas and Pius Longman, the CEO of Bright light. During my investigations, I found out that Bright Light had actually used Thomas in several occasions in order to manipulate its records in order to please investors.

I recommend that Bright Light directed to refund the money they owe the plaintiffs. Additionally all their dividends must be paid in full in reference to the contract. On the other hand, Thomas should be subjected to the full force of the law. In addition, he should be barred from participating into any form of transactions by any of the auditing firm for the next three years. Key words: fraud, Bright Light consultant firm, manipulation of company’s records, please investors. Introduction Mr.

Mark Thomas was an accountant at Bright Light consultant firm. Several allegations were raised in regard to allegations of fraud by the company. In essence, in the bid by the company to develop and maintain competitive advantage, it resulted into venturing into fabricating fake accounting documents in order to attract more shareholders. In 2012, Mr. Thomas was in charge of the accounting department. . This dubious act was intended to build confidence of potential investors in Bright Light performance.

Consequently, many people invested in the company with expectations that they would get good returns in regard to the good performance record portrayed by the company. Nevertheless, this act of fraud by Bright Light would not last for long before the scandal was revealed by some investors after the company failed to honor its agreement with the investors in relation to payments of dividends due by the end of their first year they entered into a contract with the company. As a result of these deliberations, two investors sued Bright Light for failure to honor their contract and fraudulently obtaining money from them.

With evidence and witnesses having presented and appeared before the duly, the court ordered that I should conduct a thorough investigation and auditing of Bright Light company. Specifically, the court wanted me to find answers to the following questions: 1. Did Thomas engage in manipulating records? 2. If yes, why did he do that? 3. Was the company CEO aware of these accounts? 4. What is the best way to deal with such incidences if proved to be there? Results With such accounts, it is evident that Bright Light had ventured into dangerous business that put Thomas into controversy especially when it came to having a dilemma on whether he would keep the secret in order to retain his job or on the other hand, to tell the truth in order to save hundreds of investors who had invested in Bright Light.

Studies have indicated that, in the accounting sector, it is crucial for persons in this profession to exercise the highest level of honesty and accountability when discharging their mandates (Hoffman, 1996;