The SEC Case Against Pfizer Case Deals with the Issue

question 61

Essay

The SEC case against Pfizer case deals with the issue of improper payments, including hospitality and travel expense, made to doctors and health-care professionals in other countries, and illustrates the importance of an effective system of internal controls, strong corporate governance, and tone at the top. Describe the facts of the case and evaluate the effect on accountants and auditors on disclosing illegal acts and evaluating internal controls.

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Definitions:

Supply-Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Consumer Electronics

Electronic equipment intended for everyday use by individuals, including devices like smartphones, televisions, and computers.

Marketing Strategies

Plans designed to achieve marketing objectives, involving the targeted promotion of products or services to specific audiences.

Insourcing

The practice of using a company’s internal employees or other resources to accomplish a task.