documentation is the only formidable practice that is truly acceptable. With this practice‚ fraud or input errors are bound to occur‚ by human error or fraudulent means to attain financial gain. Let’s remember that nearly a decade in previous‚ fraudulent reporting previously occurred in multiple public companies such as WorldCom and Enron. Now lets also consider that often times management will not see certain practices‚ whereas an auditor may (Chao
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Memorandum Date: 2/18/13 Re: HealthSouth Accounting Scandal HealthSouth Corp.‚ one of the nation’s largest healthcare services providers in the United States was involved in one of the largest accounting scandals in United States history. HealthSouth Corp and its officials overstated earnings in order to meet Wall Street earnings expectations. This memorandum will describe who was involved‚ how the operation was carried out‚ as well as a timeline documenting the resulting damages of the scandal
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REGINA COMPANY POINT OF VIEW: Regulator – National Commission on Fraudulent Financial Reporting CASE CONTEXT: Regina Vacuum Cleaner Co. seemed to be doing excellent as manifested in its healthy 1988 annual Financial Statements. However‚ Regina Company ended up as a tragic story that served as cautionary epic to investors‚ creditors‚ auditors‚ the public and the government. The Company was acquired through a leveraged buyout by a group of Top Executives led by Donald Sheelen‚ former
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based on similar features or limited data ranges. Clusters are used when data isn’t labeled in a way that is favourable to mining. For instance‚ an insurance company that wants to find instance of fraud wouldn’t have its records labelled as fraudulent or not fraudulent. But after analysing patterns within clusters‚ the mining software can start to figure out the rules that point to which claims are likely to be false. Decision trees‚ like clusters‚ separate the data into subsets to divide them into further
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Chapter 1 Fraud examination – process of resolving allegations of fraud from inception to disposition. It involves not only financial analysis‚ but also taking statements‚ interviewing witnesses‚ rating reports‚ testifying to findings‚ and assisting in the detection and prevention of fraud. Fraud theory approach – the methodology used to investigate allegations of fraud. 1) Analyze available data‚ create hypothesis‚ test hypothesis‚ refine / amend hypothesis. Occupational fraud / abuse – the use
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Final Policy Paper Examination of Sarbanes Oxley Act By Murtaza Moiz Student ID# 861034573 Ethics and Law in Business and Society Bus 102 Professor: Dr. Sean Jasso TA: Tommy Table of Contents Abstract Section 1 Prologue 1 The Past of Sarbanes Oxley Act 3 Tracing Implementation of the Bill 5 Tracing the Act’s Implementation 7 Impact on Businesses and Societies 9 Pessimistic Impacts 10 Optimistic Impacts 10 Value of Corporate Social
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has two main loopholes in their business practices that resulted in employee taking advantage of it and hence violated the ethical issues. Firstly‚ the lack in senior management’s commitment and responsibility for identifying risk exposures to fraudulent. Secondly‚ the need for establishing controls‚ policies and procedures for prevention and detection of these activities. In general‚ we stress that CAL may be placing too little attention on the development of effective controls and alternative
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advantage of it. The company changed its profit and loss reports to the shareholders which encouraged the employees to invest in their stock. Other than that‚ Enron was using the money from their firm for their personal purposes while reporting fraudulent profit to their
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offer personal gains and profit‚ our principles and values may be compromised if we are not rooted in the truth which is the Word of God. The Bible aims to establish a code of conduct and behavior for believers to avoid wrongdoings and engage in fraudulent activities. Accounting fraud is defined as “the intentional misrepresentation or alteration of accounting records regarding sales‚ revenues and expenses or other factors for a profit motive” (businessdictionary.com‚ n.d). All companies
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understand the techniques used by fraudsters and how to avoid falling prey to them. This fraud relies on technology currently available and the easy ability to obtain machinery to steal individual identities and account information‚ and to produce fraudulent credit cards. Information cited is
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