Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 18 December 2018
Revision date: 15-Jan-2019
Length: 21 pages
Data source: Published sources
Abstract
Robert Mayhem, a senior manager at International Game Technology, had filed a whistleblower report with the US Securities and Exchange Commission alleging that the company has misstatements in its financial reports. Mayhem's report involved IGT's practice of refurbishing used parts in one of its reporting segments and then transferring those parts to another reporting segment. Mayhem indicated that IGT's method of determining the costs of the refurbished parts was inaccurate and resulted in profits being shifted from one segment to another. Prior to his report to the SEC, Mayhem had reported his concerns to his managers and to the company's internal compliance hotline. At about the same time, IGT announced that it had accepted an offer to be acquired by another large player in the industry which would soon move its incorporation out of the U.S. and into the U.K. What should IGT do regarding the whistleblower and his report?
Locations:
Industry:
Size:
Large
Other setting(s):
2014
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 3 February 2022
Revision date: 16-Feb-2022
Length: 20 pages
Data source: Published sources
About
Abstract
Robert Mayhem, a senior manager at International Game Technology, had filed a whistleblower report with the US Securities and Exchange Commission alleging that the company has misstatements in its financial reports. Mayhem's report involved IGT's practice of refurbishing used parts in one of its reporting segments and then transferring those parts to another reporting segment. Mayhem indicated that IGT's method of determining the costs of the refurbished parts was inaccurate and resulted in profits being shifted from one segment to another. Prior to his report to the SEC, Mayhem had reported his concerns to his managers and to the company's internal compliance hotline. At about the same time, IGT announced that it had accepted an offer to be acquired by another large player in the industry which would soon move its incorporation out of the U.S. and into the U.K. What should IGT do regarding the whistleblower and his report?
Settings
Locations:
Industry:
Size:
Large
Other setting(s):
2014
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 3 February 2022
Revision date: 16-Feb-2022
Length: 20 pages
Data source: Published sources