Phar Mor Case Summary

In 1958, Alex Grass incorporated Rack Rite Distributors, Inc. Grass opened Rite Aid’s first store, through Rack Rite, in 1962, as a Thrift D Discount Center, in Scranton, Pennsylvania. 1963, Thrift D Discount Center became a drugstore chain when they opened five more stores. In 1965, the Thrift D Discount Center expanded to five northeastern states by quickly acquiring and opening new stores. In 1966, the first Rite Aid store opened in New Rochelle, New York. 1976, they introduced seventy Rite Aid private label products. The next year, 1968, they changed their name, officially, to Rite Aid Corporation and started trading on the American Stock Exchange. Then, two years later, in the beginning of the 1970’s, they moved to the New York Stock Exchange. Again, two years later, 1972, they had been operating 267 stores in 10 states. 1981, nine years later, they became the third-largest retail drugstore chain in the country. In 1983, they made over $1 billion in sales. In 1987, their twenty-fifth anniversary was celebrated and they, by then, had 420 stores in 9 states and Washington D.C., as well as Pennsylvania, where they started their business as a Thrift D Discount Center, in Scranton. Their market had greatly expanded and they had passed the 2,000-store mark to become the nation’s largest drug store chain in terms of store count. Eight years later, in 1995, they acquired Perry Drug Stores, the biggest chain of drugstores in Michigan. It was their largest acquisition to date. By then they had operated nearly 3,000 stores. That same year, Martin Grass succeeded his father Alex Grass, as Chairman and CEO of Rite Aid. The year after that, they had grown out to the West Coast and the Gulf Coast, adding more than ...

I first see signs of GM’s impending financial stress through financial information in 2005. Although revenues remained constant at 2005 compared with 2004, the expenses increased drastically and caused the net income to change from positive to negative. The stockholders’ equity decreased by 47% as well, and the cash flow from operations was a huge deficit. Those awful performances in finance and operation also imposed a significant negative influence on stock price of GM. In 2005, annual high, low and closing stock price all decreased by more than $10. These indicators demonstrated that GM faced severe financial difficulties. Sales could not cover the high expense, and the negative cash flow could not meet its obligations.

Investors and the general public lost their life savings, their jobs, and confidence in capital markets because some auditors and firms lost their way. This can and should not happen, especially when the purpose of an audit is to protect the public, not harm it. It is not fair to them and should not be tolerated. Auditors and firms should get back to the roots and values of the profession- honesty, integrity and the public trust. SOX and the PCAOB will help us get there.

These were the major areas where this man was focused and thus gain name, fame and recognition too. He was smart and his smartness was hidden behind these areas. One of the main ingredients behind the success of the Wal-Mart was the adoption of latest technology and from the beginning this man highlighted the key element that was to keep the cost down and profits up. This was the best possible method according to him in order to tighten up the inventory so that it can be used at right time. He further added that too much inventory lead towards undue expenses and it will result in loss of sales. This is the reason how the Wal-Mart’s computer database is the second only to the pentagon in terms of

1. Given what you know so far, how would you answer a question from a patient (family member) when asked abut generic vs. brand name drugs. Please address the cost, availability and efficacy in your answer, citing a specific drug if you choose. Remember that this could play into adherence, so not only what you say, but how you convey this information is equally important.

(encyclopedia.com, W.W. Grainger, 2015) The plan was to last three years. The company’s goal was to “streamline it’s sales force and eliminate redundant inventories.” (encyclopedia.com, W. W. Grainger, 2015) There were many cost factors related to the reorganization and did effect the company’s bottom line. “Costs related to the reorganization and upgrades to information systems contributed to lower gross margins in the mid-1990s.” (encyclopedia.com, W. W. Grainger, 2015) Because of the reorganization stock prices did fall, however, it was just a short time period and they bounced

Immar Medrano was employed as a journeyman electrician by Marshall Electrical Contracting, Inc. (MEC). Medrano attended an electrician apprenticeship night class at a community college. His tuition and books were paid for by MEC. One night, when Medrano was driving home from the class, a drunk driver crossed the centerline of U.S. Highway 65 and collided head-on with Medrano’s automobile. Medrano died in the accident. His wife and two children filed a workers’ compensation claim for death benefits against MEC. Medrano’s family should receive workers compensations since he was acting within the scope of his employment when he sustained injuries in the car crash that resulted in his death. This was in the scope of his employment since MEC paid

One example of the Charter being a double edged sword is that, in practice, it serves to both give and take away rights. This is manifested in the issue of abortion. In the landmark case of Morgentaler, the Supreme Court of Canada used Charter provisions to strike down section 251 of the Criminal Code, which, at the time, “made it a crime to perform or have an abortion at all stages of pregnancy” (Martin, 2002, p. 336). In 1988, six years after the Charter came into effect, Dr. Morgentaler challenged section 251 on the basis of infringing a woman’s Charter right to security of the person by violating “women’s physical integrity and psychological well-being” (Martin, 2002, p. 336). The Charter right to liberty was also used to strike down this law, because it “took a personal choice away from a woman” (Martin, 2002, p. 337).

PREDICATION: On 08/23/2016 APM Mary Cuestas was contacted by Joe Stein to investigate transactions that Mason Dreire-Ann conducted at store 05051 which related to fraudulent loading of gift cards.

PER REPORTER: On Monday, January 9th, Aayalliah reported to therapist (Courtney) that two different staff (Kenisha & Christy) smushed her behind her bedroom door. She said she was behind the door trying to get a toy and they smushed her by pushing the door against her. She said she told them "I'm behind here" and they said they didn't care. Aayalliah said she came from behind the door and they put her in a restraint on the floor until the nurse (Gloria) arrived. She said the nurse witnessed her being smushed behind the door then Aayalliah changed it and said Gloria witnessed her being put in a restraint. Per reporter, Janice (nurse) assessed the child to check her for injuries. There were bruises on her right forearm, inner right elbow,and

Edemariam, A. (2009, March 14). It all began in a small store in Arkansas.... The Guardian. Retrieved December 2, 2013, from http://www.theguardian.com/business/2009/mar/14/wal-mart-us-economy

Fraud can be perpetrated by anyone within an organization. Where the blame lies is dependent upon who commits the fraud, and the length of time it goes undetected. IN the case of Phar-Mor, the fraud the inevitably resulted in the destruction of the company was perpetrated by Mickey Monus, the COO, but is he solely to blame? Not in this case. Yes, he utilized his authority to perpetrate the fraud, however his CFO, not only agreed to comply with Mr. Monus’ instructions, he was later assigned the job of continuing to falsify the financial statements. Furthermore, Mr. Anderson, the accounting manager also became embroiled in the fraudulent activities.

Let's start with how SOX changed the audit committee. First, the auditors used to be hired and fired by management. SOX changed that. After SOX, the audit committee was required to hire and supervise the external auditors. In some cases they also have responsibility for the internal audit team as well (but this was not regulated). This was a big change to their responsibilities. Also, the audit committee was required to have at least one "financial expert" or explain to the SEC why it didn't need a financial expert. This means that not only were the responsibilities changes but the qualifications changed too.

To keep an over inspection of any negative or unethical audit regulations being mishandled, the Public Company Accounting Oversight Board (PCAOB) has been connected after the SOX of 2002. It makes sure that any public company as in this case KPMG follows the required regulations that are needed to be secured in the ethical levels. To make the specific firm’s outlook be reviewed in an easier manner, the PCAOB has facilitated this action by preparing the inspection methods and processes in the best manners possible. Therefore, this would implement the process throughout the tax planning by the company and would result in major motivation for the professionals within. Thus, there would be less commitment of fraud being held and everyone will secure to act ethically to accomplish any goal in mind by the company at the end of the fiscal

The United States Congress enacted the Sarbanes-Oxley Act in 2002 after major scandals revealed loopholes in accounting policies. As Arthur Anderson LLP has double duties in Enron scandal, auditors are limited to types of auditing to maintain independence under SOX Sec.201. Sec. 10A of Securities Exchange Act of 1934 is amended by requiring audit partners to rotate after five years of service.