evaluate the events that occurred prior (causes) and subsequent (outcome) to the fraud‚ and the accounting schemes employed to get the fraud done. It presents examples of companies who have used inappropriate accounting practices. Enron‚ WorldCom‚ Tyco‚ HealthSouth and Adelphia were selected for analysis because of the availability of information regarding specific events occured before‚ during and after the fraud period as well as the ethical issues involved . There is abundant literature presented
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The Effect of Sarbanes-Oxley (SOX) and the Public Companies Accounting Oversight Board (PCAOB) on Auditing Practice In business‚ there should have various rules and regulation governing in order to avoid mismanagement and frauds associated. In the United States‚ several bodies have been put in place to oversee‚ create registration‚ reporting and‚ providing transparency. Such bodies include‚ the Sarbanes-Oxley (SOX) which eventually resulted in the creation of the Public Company Accounting Oversight
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of theft/fraud. According to last year the loss of money for businesses and financial institutions are in the billions and with consumers out of pocket expenses has been about 5 billion dollars. "Identity theft" refers to crimes in which someone wrongfully obtains and uses another person’s personal data (i.e.‚ name‚ date of birth‚ social security number‚ driver’s license number‚ and your financial identity— credit card‚ bank account and phone-card numbers) in some way that involves fraud or deception
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Check Fraud and Check Washing Week 6 Paper Park University Check Fraud and Check Washing Check fraud and check washing are both highly illegal and both are increasing at an alarming rate. Many people can be fooled in todays world with fraudulent checks and not know that anything was incorrect until receiving notice from their financial institution. Check washing is when mail snatchers will take a check from you and use chemicals to erase the things written on the check and make the check payable
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Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s‚ WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result‚ their Expense-to-Revenue (E/R) Ratio was their measurement for their main objective
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and Management Sciences (JETEMS) 3(3):191-195 (ISSN:2141-7024) The New Fraud Triangle Model 1 Rasha Kassem and 2Andrew Higson 1 British University in Egypt Cairo-Suez Desert Road‚ El Sherouk City 2 School of Business and Economics‚ Loughborough University‚ Loughborough‚ LE11 3TU‚ UK Corresponding Author: Rasha Kassem ___________________________________________________________________________ Abstract Fraud in corporations is a topic that receives significant and growing attention
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Following are some of the most extreme examples of gross misconduct regarding fraud in our history. The Waste Management Scandal in 1998. They reported 1.7 billion in fake earnings by increasing the length of depreciation time for property‚ plant and equipment on the balance Page 2 sheets. The fraud was detected when a new CEO was brought in and the new management team went through the books. Motivation seems to be that this publicly traded company needed to keep stock prices up to keep investors
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to find ways to set fraud in motion – and a new breed of offenders is finding cunning ways to do so. After more than 60 years‚ the classic fraud triangle of three elements or events that motivate an employee to cross the line has morphed ™ into Crowe’s Fraud Pentagon. Company boards and senior management must take an offensive stance against the five conditions that precipitate fraud with a clear plan that limits the opportunity for fraud and minimizes the impact when fraud does occur.” Jonathan
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Computer Fraud and Abuse Act The Computer Fraud and Abuse Act is a law passed by the United States Congress in 1986 intended to reduce cracking of computer systems and to address federal computer-related offenses. The Computer Fraud and Abuse Act (codified as 18 U.S.C. § 1030 governs cases with a compelling federal interest‚ where computers of the federal government or certain financial institutions are involved‚ where the crime itself is interstate in nature‚ or computers used in interstate and
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Fraud Prevention and Management Recommendations Paper CJR-334-Z1 Economic Crime Investigation October 29‚ 2012 Fraud Prevention and Management Recommendations The purpose of this Fraud Prevention Plan is to set out the approach to dealing with fraud risk within our organization. In order to prevent the types of frauds that have already occurred within our organization it will be necessary to create “a culture of honesty‚ openness‚ and assistance…..fraud prevention is where the big savings
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