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About Xerox
Xerox is an American multinational document management corporation founded in 1906. Besides being the largest supplier of toner based photocopier machine and associated supplies, Xerox’s researchers and its Palo Alto Research center invented several important elements of personal computing which was eventually shared with Apple and IBM. The company was listed on New York Stock Exchange in 1961 and on the Chicago Stock Exchange in 1990.
Assessing unethical practices and poor internal control
On April 11, 2002, the Securities and Exchange Commission (SEC) filed a complaint against Xerox that between 1997 and 2000 Xerox deceived the public by employing several accounting maneuvers, the most significant of which was failed to compliant with US GAAP by recognizing equipment rentals or leases as sales revenue which improperly classified over $6 billion in revenue, leading to an overstatement of earnings by $1.4 billion over four years. SEC also alleged that Xerox’s senior management was aware of, either by directing or approving, the accounting actions that were taken for the purpose to meet revenue and profit goals. KPMG, Xerox’s auditor, silenced the accounting fraud in order to keep the relationship with Xerox that had lasted for nearly 40 years and to protect the $82 million in audit and non-audit fees . Settle of this corporate scandal caused six former top officials of Xerox more than $22 million. However, Xerox reimbursed the executives for all but $3 million which was considered as fine by SEC and cannot be reimbursed under its rules .
Assessing dysfunctional behaviours of corporate managers
One of the six top officers who settled accusations by SEC regulators was G.Richard Thoman who joined Xerox on April 1, 1999 as the eventual successor of Paul Allaire. Thoman was brought in because of his background and experience could make Xerox succeed in

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