...Comprehensive Case United States Surgical Corporation 1 Running head: COMPREHENSIVE CASE U.S. SURGICAL CORPORATION Comprehensive Case United States Surgical Corporation Scott P. McHone Liberty University Comprehensive Case United States Surgical Corporation 2 Abstract During the past thirty years we have seen an increase in the number of companies that have committed some form of financial shenanigans. Some of these companies have manipulated Generally Accepted Accounting Principles to present themselves as financially sound. Others have committed fraud to achieve the same objective. With this type of corporate behavior there is an increasing need for better auditing and more reliable audited financial statements. The purpose of this paper is to read and study a comprehensive case as presented in the textbook Contemporary Auditing: Real Issues and Cases and answer the questions as listed at the end of the case study. I decided to select case 1.10 United States Surgical Corporation. Comprehensive Case United States Surgical Corporation 3 Comprehensive Case United States Surgical Corporation To fully appreciate this paper it is recommended that the case study along with the associated questions be read prior to reading this paper. Question one from the case study focuses on what audit procedures should have been performed by the auditing firm for the 1981 audit period that would help increase the possibility of detecting the overstatement of the leased and loaned assets due...
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...Company Profile Stryker Corporation, together with its subsidiaries, operates as a medical technology company. The company operates in three segments: Reconstructive, MedSurg, and Neurotechnology and Spine. The Reconstructive segment offers orthopaedic reconstructive (hip and knee) and trauma implant systems, as well as other related products. The MedSurg segment provides surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling and emergency medical equipment, reprocessed and remanufactured medical devices, and other medical device products. The Neurotechnology and Spine segment includes neurovascular products, spinal implant systems, and other related products. The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the United States, Ireland, Germany, France, Switzerland, the United Kingdom, Japan, Canada, the Pacific region, and Latin America. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan. Stryker Corporation is a leading maker of specialty surgical and medical product based in Kalamazoo, Michigan. although not yet the household name, Stryker is one of the most consistent profitable growth company in America. In 2003, Stryker posted record sales of 3.6 Billion. After John Brown became chairman in 1977, Stryker achieved 20 percent or more annual...
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...relevant to the audit objective. The specific products with modifications should have been traced back to their purchase orders. Instead the auditors just took the explanation of these orders from management. Finally the reliability of the evidence was not high, USSC had a lot to lose if it was concluded that they were indeed general production and the General Manger for Lacey had changed his position numerous times. The only reliable evidence was that of the independent law firm that concluded the purchase orders and invoices were not for tooling modifications. 5 The evidence that hope collected that supports USSC's claim that the charges in question were in fact for tooling modifications was the General Manager of Lacey Corporation (A division of Barden Corporation) goes back on his previous statement and confirms that the purchase orders and invoices were in fact for tooling modifications. USSC explained their position and said that they had instructed Lacey to make certain tooling changes that would result in improved efficiency in production of USSC products. When the audit team asked to take a tour of the Lacey plant to examine the actual production process the Lacey General Manger informed the audit team that personnel often mistakenly charge tooling jobs to production. There was more evidence that supported the position that the costs in question were just generic production expenses. Initially the audit team did not notice that the assets were being overstated and there...
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...According to the International Society of Hair Restoration Surgery, an estimated 66.8% of males and 33.2% of females in the United States had a nonsurgical hair restoration process in 2012. [1] Hair replacement is a reliable option for individuals who experience hair loss due to heredity and medical related issues. Individuals needing hair replacement options have the option of surgical and non surgical. Surgical is considered as hair replacement which removes small pieces of the scalp that contain hair follicles and relocates them to an area on the head that is losing hair. The American Hair Loss Council describes non surgical hair replacement options as hair additions or hair prosthetics. [2] Examples of hair prosthetics include hair extensions, hair pieces, partial hair prosthesis, and toupees. These particular hair pieces will contain human hair, synthetic hair, or a combination of both. Hair loss comes in two major forms; heredity and medically. Medically, two common hair loss forms come from chemotherapy and alopecia areata. Chemotherapy is the use of medicines or drugs to treat a disease, such as cancer. Cancer cells tend to grow fast, and chemo drugs kill fast growing cells. Although these drugs travel throughout the body they can affect normal healthy cells that are fast growing too. The normal cells most likely to be damaged by chemo are hair follicles. Hair loss during chemo is a form of alopecia which causes thinning of hair and/or losing hair on all parts...
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...Sales 12 Asset Acquisition 13 Financing Needs 13 Conclusion 14 Appendices 15 Income Statement 15 Balance Sheet 16 Sources and uses 17 Percentage of Sources and Uses 19 Firm Ratios 21 Industry Ratios 22 Graphs of Ratios 23 Bibliography 26 Introduction This paper contains the financial analysis of Stryker corporation and its major competitors during the past 5 years. Also a 3 year forecast is created to show were the company is heading and changes needed to be made to be more efficient. Theme Time are hard for the medical industry with the global economic crisis and with the announcement of the Affordable Care Act’s medical device excise tax. Stryker corporation has done better than the industry on average sustaining a strong financial while presenting new products in the market. Growth is becoming slow for mature firms but Stryker is making all the right moves to dominate the market. To increase growth the company has shifted its focus on acquisitions. With the acquisition of Trauson, a Chinese leading manufacturer of surgical products, the company continues to focus on sales outside the United States. Also with the growing demand increase for orthopedic products, the company needs to continue investment in research and developments, and increase production volume. History of the Firm Stryker is a medical equipment supplying company based on Kalamazoo, Michigan. It was founded by Dr. Home Stryker due to his need...
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...Board member for Pharmaceutical Packaging strategic initiative ➢ Sourced/hired senior level Design/Development team for new medical/surgical group ➢ Integrated PEAK Surgical (Palo Alto, CA) with Salient Technologies (Portsmouth, NH) MEDTRONIC, INC. Portsmouth, NH 2012 – Present Advanced Energy, LLC Global HR Director/Strategic Business Partner • Direct report to VP/GM global $300M surgical technologies business unit – HR/OD strategy. • Focus on 200 person commercial team – transition from distributorship model to B2 B direct sales. • Part of new leadership team – long-term strategic goal: $1B annual revenues by 2020. • Aggressive expansion plans in underserved surgical markets: India, China, and South America. • Executive staffing, succession planning, leadership development and talent management focus. • Driving unique high-performance culture setting the bar for MDT in double digit growth model. NYPRO, INC. Clinton, MA 2009 – 2012 Healthcare Global Business Unit $1.4B Global Medical Device Manufacturer Global Director, Human Resources • Sr. HR Executive for Healthcare Global Business Unit – reported to GBU Group President • Lead Global HR Teams in Hong Kong, Europe, Mexico, Puerto Rico and United States (Chicago IL, North Carolina, and Massachusetts) • Managed HR/OD/Compensation/Training and Strategic Staffing support/services for all...
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...Title: Fiduciary obligations may spring up by reason of relationships of trust and confidence or confidential relations. Introduction Fiduciary is an important issue arises in business relationships, in partnerships, it helps create a fair business environment for all the parties when working together, in agency, it protects the principles' benefits, in corporations, it may lead the business operates properly and legally. Therefore, fiduciary obligations are closely related to co-operations Trust and confidence are the most important elements in these fiduciary relations, in this essay, the relationship of a fiduciary obligation and above relations will be demonstrated and explained. Table of Content Introduction P.1 Table of Content P.2 The Basic Concept of Fiduciary P.3 Fiduciary Concepts and Obligation vs Partnership Relations P.6 Fiduciary Concepts and Obligation vs Corporate Relations 1. Directors P.8 2. Promoters P.11 Conclusions P.13 Bibliography P.14 The Basic Concept of Fiduciary Fiduciary, under oxford’s dictionaries’ definition, is trustee who is given control or powers of administration of property in trust with a legal obligation to administer the beneficiary’s interest, and the Cambridge dictionary defines “relating to the responsibility to look after someone else's money in a correct way”. It is obvious that the fiduciary concept involves the element of mutual...
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...For the exclusive use of Q. WEI2015. 9-699-012 REV: JULY 23, 2002 STEFAN THOMKE Innovation at 3M Corporation (A) On the evening of October 23, 1997, Rita Shor, senior product specialist at 3M, looked across the conference room at her team from the Medical-Surgical Markets Division. She wondered when to draw to close the intense ongoing debate on the nature of the team’s recommendations to the Health Care Unit’s senior management. A hand-picked group of talented individuals, the team had embarked on a new method for understanding customer needs called “Lead User Research.” But this initiative to introduce leading-edge market research methods into 3M’s legendary innovation process had now grown into a revolutionary series of recommendations that threatened to rip apart the division. While senior management wanted the “Lead User” team to execute a manageable project involving surgical draping material to protect surgery patients from infections, the team now wanted to rewrite the entire business unit’s strategy statement to also include more pro-active products or services that would permit the upstream containment of infectious agents such as germs. This went against the incrementalist approach that for so long had pervaded 3M. After all, as Mary Sonnack, division scientist and an internal 3M consultant on the new Lead User methodology, noted “3M gets so much revenue from incremental products . . . like a blue Post-it note instead of just a yellow one.” ...
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...An Assignment on: An Analysis of Ophthalmological Industry Submitted By Ikleel Sarwari Malik Industry Profile Introduction Ophthalmologic Industry Overall, ophthalmology covers devices, surgical procedures, pharmaceuticals and consumer eye-care goods used in the treatment of eye diseases and infections. Ophthalmology devices are used for a range of key procedures, including vitreo-retinal surgery to treat retinal conditions and refractive surgery to restore impaired vision in cases such as hyperopia and myopia. Devices are also used for ophthalmological surgery in the treatment of glaucoma, the leading cause of blindness, and cataracts, and the number one cause of treatable blindness, to replace the natural eye lens with an intraocular lens. Eye Health across the Globe According to the World Health Organization, there are more than 180 million individuals in the world who are blind or are at serious risk of becoming blind. This number is staggering when you consider that as many as 75 percent of these cases could have been prevented or treated at an early stage. Unfortunately, proper eye care is either unaffordable or unavailable in many areas of the world today. This problem is compounded by the fact that many within the medical communities that serve these areas lack the proper education, tools and resources to provide adequate care. The world's population is aging, and the prevalence of blindness caused by treatable or preventable eye diseases – such as...
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...Cengage Learning representative will contact you to review and confirm your order. G E T S T A R T E D Visit www.custom.cengage.com/makeityours/knapp7e to make your selections and provide details on anything else you would like to include. Prefer to use pen and paper? No problem. Fill out questions 1-4 and fax this form to 1.800.270.3310. A Custom Solutions editor will contact you within 2-3 business days to discuss the options you have selected. 1. Which of the following cases would you like to include? Section 1: Comprehensive Cases 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Enron Corporation Just for FEET, Inc. Jamaica Water Properties Health Management, Inc. The Leslie Fay Companies Star Technologies, Inc. Lincoln Savings and Loan Association Crazy Eddie, Inc. ZZZZ Best Company, Inc. United...
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...prevent……………………………………………………6 2.3 Conclusions…………………………………………………………………………………………………………………………..7 3. Medical device sector in the US………………………………………………………………………………………………………8 3.1 Economic Impact…..………………………………………………………………………………………………………………8 3.2 The Sector by State…..…………………………………………………………………………………………………………10 3.3 Key Institutes: Patent Applications in the Cluster Areas…..………………………………………………….13 3.4 Conclusions…..…………………………………………………………………………………………………………………….20 4. Turning research into novel medical devices………………………………………………………………………………….22 4.1 The Medical Device Development Process…..……………………………………………………………………..22 4.2 CIMIT: A Structure for Medical Device Innovation…..………………………………………………………….23 4.3 Stanford Biodesign: Innovation as a Discipline…..………………………………………………………………..26 4.4 Conclusions and Recommendations…..……………………………………………………………………………….28 5. Summary and Conclusions…………………………………………………………………………………………………………….30 6. Acknowledgements……………………………………………………………………………………………………………………….32 7. References…………………………………………………………………………………………………………………………………….33 Appendices A1 Selection of Key Institutes A2 Results Patent Analysis A3 Research Profiles 1. Introduction This report analyzes the R&D infrastructure in the United States in the field of new medical devices. It is part of the Innovative Medical Devices Initiative the Netherlands (IMDI.NL) thematic program that aims to focus the Netherlands’ R&D infrastructure for medical devices on health care demands and economic growth...
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...first few pages of Chapter 1 “International Business (Competing in the Global Marketplace)” an example is given referencing the necessity for international healthcare due to the rising cost and inaccessibility to quality healthcare in the United States. The most interesting part of this example to me was the following statement. “Some insurance companies are starting to experiment with payment for foreign treatment at internationally accredited hospitals”. (Hill, 2011) Initially I found this statement comforting in the fact that insurance companies were thinking outside of a microeconomic healthcare model in order to better serve the people that they insure. On a larger scale this statement is disconcerting. It is disconcerting in the fact that everything associated in our healthcare system from equipment supply to the education and utilization of our medical professionals is either being mismanaged or financial gouged by government and the private market. As a result of the gauging, like any other business cheaper goods and services are being sought out elsewhere. It is astounding that it is cheaper to fly to another country and have a major surgical procedure performed at a quarter of the cost then it would be if performed in the United States. “Globalization refers to the shift...
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...Chapter 43 Law for Small Business ------------------------------------------------- Section 1: The Importance of Legal Counsel ------------------------------------------------- Section 1: The Importance of Legal Counsel This chapter will cover the specific laws for small business owners and requirements needed for someone to start their own small business. The legal principles in this chapter are applied in the context of a small business enterprise. Is an attorney needed for someone to start their own business? If one is not familiar with the myriad rules and regulations, it is insisted that one may hire an attorney to help avoid penalties incurred from violating laws or regulations. An Attorney helps with: * Negotiating franchise agreements * Creating standard business forms, such as purchase orders and contract confirmations. * Buying or selling real property or a business. * Negotiating agreements to license intellectual property rights. * Obtaining new outside investors. Finding an Attorney (pg.838) When selecting an attorney, businesspersons would rely on referrals from friends, business associates, and other local entities. Other sources one could use to find an attorney would be using: * The chambers of commerce and bar organizations, * Attorneys and their areas of specialty are often listed in the Yellow Pages, * Martindale-Hubbell Law directory found in most law library’s or via (www.martindale.com). Retaining an...
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...Stokes et al. BMC Health Services Research 2011, 11:135 http://www.biomedcentral.com/1472-6963/11/135 RESEARCH ARTICLE Open Access Impact of bleeding-related complications and/or blood product transfusions on hospital costs in inpatient surgical patients Michael E Stokes1*, Xin Ye2, Manan Shah3, Katie Mercaldi4, Matthew W Reynolds4, Marcia FT Rupnow2 and Jeffrey Hammond2 Abstract Background: Inadequate surgical hemostasis may lead to transfusion and/or other bleeding-related complications. This study examines the incidence and costs of bleeding-related complications and/or blood product transfusions occurring as a consequence of surgery in various inpatient surgical cohorts. Methods: A retrospective analysis was conducted using Premier’s Perspective™ hospital database. Patients who had an inpatient procedure within a specialty of interest (cardiac, vascular, non-cardiac thoracic, solid organ, general, reproductive organ, knee/hip replacement, or spinal surgery) during 2006-2007 were identified. For each specialty, the rate of bleeding-related complications (including bleeding event, intervention to control for bleeding, and blood product transfusions) was examined, and hospital costs and length of stay (LOS) were compared between surgeries with and without bleeding-related complications. Incremental costs and ratios of average total hospital costs for patients with bleeding-related complications vs. those without complications were estimated using ordinary...
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...Teaching Notes HealthSouth Corporation: Fraud, Greed and Corporate Governance Case Summary During the 1990s, Richard M. Scrushy, the former CEO of HealthSouth Corporation, engineered many acquisitions of rehabilitation clinics, outpatient surgical care operators, nursing homes and other health care companies. Mr. Scrushy had been a respiratory therapist who spotted a niche in the health care market and utilized his entrepreneurial talents, marketing skills, and super salesmanship to set up and run what became the third largest publicly held company in Alabama. Eventually, HealthSouth became the largest provider of ambulatory surgery and rehabilitative health care services in the United States with 1,700 facilities and 51,000 employees. In 2003, the Securities and Exchange Commission (SEC) accused the company and Mr. Scrushy of inflating earnings to the tune of $1.4 billion since 1999. In November 2003, a federal grand jury indicted Mr. Scrushy on 85 counts including conspiracy, securities fraud, money laundering and charges related to overstating HealthSouth’s earnings by nearly $3.0 billion. According to federal investigators, the company overstated earnings to meet analysts’ earning estimates, while hiding the accounting fraud from the auditors. However, questions were raised whether the auditors failed to find or simply overlooked the fraud at HealthSouth. Central to the investigation was the issue of what role Mr. Scrushy played in “cooking the books.” However, as the case...
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