Assignment 2 Essay

798 Words Jul 14th, 2015 4 Pages

Act The Travel Expense Billing Controversy and False Claims Act
PricewaterhouseCoopers LLP (PwC), a major accounting firm, was engaged in unethical billing practices that generated millions of dollars in additional revenue to the company. PwC was charging its clients the full price of airline tickets and other travel expenses, such as hotel rooms and car rentals, while it was actually expending only a small percentage of the full amount billed to its clients due to applied rebates and discounts it received under travel agencies and airline contracts and negotiations. Therefore, the company was “overcharging… clients and pocketing the difference without revealing the practice” (AccountingWeb). However,
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According to the new change in the policy ,the firm need to disclose the discounts offered by transportation companies to the clents but still kept the eight percentage rebate to themselves as cover over costs ,these will help to make millions as before. But even after this change of rule Neil A Robert was not satisfied .So he filed a False Claim suit against PowerwaterCoopers LLP.The False Claim act was a government act for controlling the companies and according to this the companies who will be dishonest to government like claiming false taxs,false incomes etc.. can be sued.It was also known as whistle blower provisionsof act.The PWc has to face defeat against Mr Roberts and agreed to pay $54.5 million but did not accept the fraud allegations. The company was not efficient to maintain integrity and professionalism by running the company unethically for its own profits and benefits. Because of making profits as main thing to be obtained the firm lost its reputation in the market and also failed to elaborate important

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