Financial Fraud: Case Analysis Of Groupon Company

Financial fraud is a significant problem faced by organizations of all types, sizes, locations and industries. Groupon company is trying to shed its image as a failed email-based daily-deals website after a lot of allegations of false financial accounting about their profit to the public. In this case Groupon has to go through again its business model about the spending and earnings for its company. It is expensive to hire 15,000 workers that works for the company in sending email to Groupon subscribers, customer service teller and writers who have to come up with astonishing words to impress customers on the coupon deals via the internet all over the world to more than 46 countries. But this is one of the ways to prevent such scandal from occurring whereby these workers are working to protect the company’s assets, especially cash, from fraud which should be everyone’s job. Involving multiple people in sensitive financial and inventory processes will have them to double-check their work to prevent mistakes in Groupon. The most important thing is by ensuring to make it safe for any employee to report unusual activity directly to the higher authority in Groupon itself. Using the power in their group to verify that the company is not leaking money will have these checks in place that is enough to identify some cheaters.
It is better to make sure they know exactly who is working and who has left the company. They were also having trouble in keeping some senior executives which is very important when you’re going to go public on the stock market, because the stock market wants to see a good CEO and a bunch of stable people running the company. When Groupon can’t hold up to the COOs’, they keep leaving the company but nonetheless they still went forward after two COOs’ left the same year Groupon went to go