Fool the Auditors History of financial statement frauds acquisition accounting related party transactions non existent bank accounts - relationship with auditors overstated bank balance off balance sheet accounting misleading disclosures Changes occurring from Sarbanes Oxley Higher standards for corporate governance and accountability Creating an independent regulatory framework for the accounting profession Enhancing the quality and transparency of financial reports Developing severe civil
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Accounting Fraud at WorldCom Vanessa Gail Woods Strayer University Connor-Green/ACC 576 March 21‚ 2010 Accounting Fraud at WorldCom The break up of AT&T opened the long distance service market to small companies during the mid- to late-1980s and 1990s. Long Distance Discount Service (LDDS) opened in 1983 with moderate growth until its stock went public in 1989. CEO Bernie Ebbers decided to grow the organization through acquisitions (70 companies over the course of its lifetime)
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Parmalat‚ Europe’s Enron of fraud‚ undermined European accounting and reporting standards. The fraud‚ totaling nearly 18 billion euros‚ brought down the Italian dairy giant and ruined investors across the globe. Such a enormous fraud‚ some would assume‚ would need to be highly complex and fully developed in plan as well as execution. However‚ as Parmalat executives began to cooperate in the investigation‚ it was uncovered how rudimentary their fraud was despite the enormity in which it occurred.
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4. Explain why the fraud remained undetected for 13 years. What procedures might the auditors have performed to detect this fraud in a timelier manner? The fraud was undetected because of a lack of internal controls. There was a lack of segregation of duties between who collected the receipts and who prepared the deposits. Sally collected all of the receipts‚ closed out the drawers‚ and prepared the deposits. Since she performed all of these duties‚ she could easily cover her tracks by making sure
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Five Governmental Organizations to Report a Scam in the United States The United States takes fraud very seriously and the majority of its government organizations dedicate time and specific teams to investigate and combat fraud from occurring within the government and governmental agencies. If you work within one of these sectors‚ you usually can safely report a scam under the protection of a whistleblower policy. If you witness this as a normal citizen‚ you can feel secure with the same protection
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Occupational Fraud and Abuse Maia Cunningham-Fortson Concordia University Abstract What is abusive conduct? How does abusive conduct apply to occupational fraud and abuse? What if anything can be done to eradicate the behavior? Are there any methods that can be put in place to deter or prevent this conduct? What is meant by fraud deterrence being a “modification of behavior through the perception of negative consequences?” Do internal controls have an impact on deterring or modifying
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a Commission filing over disclosures‚ accounting fraud and a FCPA injunctive action against Tyco was settled and led to the agreement of an overview of Tyco’s global organization. The investigation of the matter then led to the findings of the misconducts that Tyco is getting Charged for in this case. During the fiscal years 2006-2009‚ Tyco Inc. was found to be involved in several illicit payment schemes. The company filed misstated financial statements with the SEC‚ failed to place and maintain
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Apollo Shoes‚ Inc. Potential for Fraud Memo September 24‚ 2014 There are a few “red flags” that have come to my attention while reviewing the minutes provided to me from Apollo Shoes‚ Inc. For starters‚ in our first meeting we requested to meet with the predecessor‚ and was told by Mr. Unum who is the Vice President of finance‚ they would rather we not speak to them. When a company refuses to have the current auditor speak with the previous auditor this always throws up a red flag. Another red
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Burning Down the House: Mortgage Fraud and the Destruction of Residential Neighborhoods Ann Fulmer March 2010 DRAFT Burning Down the House: Mortgage Fraud and the Destruction of Residential Neighborhoods Mortgage fraud is bank robbery without a gun. 1 It is a high-yield‚ 2 low risk enterprise that has been reported in all 50 states‚ Puerto Rico‚ Guam‚ American Samoa‚ 3 Canada‚ 4 New Zealand‚ 5 Australia‚ 6 and England. 7 In the United States‚ it is committed by organized international and domestic
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Case Study1: And the Fraud Continues A business can not work out without an account system‚ which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls
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