LPC NOTES THE CENDANT CORPORATION ACCOUNTING SCANDAL

THE CENDANT CORPORATION ACCOUNTING SCANDAL
BCOM21




TABLE OF CONTENTS




ACKNOWLEDGEMENT ………………………………………………………… 2

INTRODUCTION …………………………………………………………………. 3

SUMMARY ……………………………………………………………………….. 4-7

COMPANY PROFILE …………………………………………………………… 8

THE OFFICERS INVOLVE …………………………………………………….. 9-15

DISCUSSION ……………………………………………………………………. 16-20

THE SETTLEMENT

The settlement with Cendant ………………………………………… 21-22

The settlement with Ernst & Young ……………………………….. 23

THE BREAKUP ………………………………………………………………… 24

CONCLUSION ………………………………………………………………….. 25

RECOMMENDATION ………………………………………………………….. 26

BIBLIOGRAPHY ……………………………………………………………….. 27

APPENDIX ……………………………………………………………………… 28-30




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,THE CENDANT CORPORATION ACCOUNTING SCANDAL
BCOM21




ACKNOWLEDGEMENT




The researcher wish to acknowledge with gratitude the followings:



• To Dr. Roderick M. Rupido, Dean of College of Economics, Management

and Development Studies, instructor, for his lecture given about technical writing

that helps a lot to this research.

• To Mrs. Ludivinia Victorino, Department of Accountancy Chairperson who

given the task to this kind of research. And guide as in making this paper.

• To my parents who gave moral and financial support for doing this paper.

• To my friends and classmates

• To other sources

• And lastly to God Almighty who gives me guidance, strength and courage

to finish this paper.




-RESEARCHER


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, THE CENDANT CORPORATION ACCOUNTING SCANDAL
BCOM21




INTRODUCTION




This research is about CENDANT CORPORATION accounting

irregularities. Cendant Corporation was a New York-based provider of business

and consumers services, primarily within the real state and travel industries. In

2005 and 2006, Cendant broke up and spun off or sold its constituent business.

Although the company was base in New York City, the majority Cendant’s

headquarters employees were located in Parsippany-Troy Hills, New Jersey. The

last CEO of Cendant was Henry Silverman.

CENDANT CORPORATION was a product of Hospitality Franchise

Systems (HFS) and CUC (Comp-U-Card) International Corporation, merge which

was formed in December 1997.

Accounting irregularities involve inflating of company’s operating income.

The scheme was driven by senior management’s determination that CUC would

always meet the earnings expectation of Wall Street Analysts and fueled by

disregard for any obligation that the earnings reported needed to be “real”.




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