operation and safeguard of the company assets. We will examine the nature of the Parmalat accounting fraud‚ the process leading to the identification of the fraud‚ the external and internal responses to the fraud and finally‚ a discussion in which the Parmalat scandal could have been prevented if certain independent controls and mandatory regulations were in place. Nature and Context of the Parmalat Fraud The setup of the Parmalat group was a typical complex structure of a centralized‚ few shareholders
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been arrested and has confessed to a $1.47 billion (or Rs. 7‚800 crore) fraud‚ admitted that he had made up profits for years. According to reports‚ Raju and his brother‚ B. Rama Raju‚ who was the Managing Director‚ “hid the deception from the company’s board‚ senior managers‚ and auditors.” The case of Satyam’s accounting fraud has been dubbed as “India’s Enron”. In order to evaluate and understand the severity of Satyam’s fraud‚ it is important to understand factors that contributed to the ‘unethical’
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followed standard auditing procedures in regard to “Occurrence” and even claims to have seen payment but in retrospect there could not have been any payment as the job did not exist. He should have determined that Tom Padgett was a co-conspirator in this fraud‚ as he was a friend at the health club making him a related party‚ the company that Padgett and Minkow created did not exist and probably could have been found out with some effort. He also admitted he did not inspect any of the restoration sites‚
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Accounting A fraud that occurred recently was the corruption charges brought against Cardinal Health a pharmaceutical company based in Dublin‚ Ohio. The fraud involved Cardinal health paying pharmacies kickbacks in other to ensure that the pharmacies purchased prescription drugs for their pharmacies from them. Kickback schemes are a type of corruption scheme that involves the company bribing pharmacy owners or pharmacy companies for some sort of favor. While this type of fraud is for the company
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mastermind one of the largest securities frauds uncovered during the 1980s. Sam admitted that he had no empathy whatsoever for investors because he never concerned about morality or the suffering of those victims. Next I’ll analysis Crazy Eddie Case from ethical perspective and use Ethical Decision Making Model to evaluate Sam’s possible behaviors. 1. Frame the ethical issue: Should Sam join his cousin and become a willing participant in the massive fraud? 2. Gather all the facts: (1)Eddie
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activities are prohibited by specific laws while others are prosecuted under one or more general laws criminalizing dishonest behavior. White collar crimes include: embezzlement‚ false statements‚ obstruction of justice‚ bribery‚ fraud (federal mail‚ wire‚ and bank fraud)‚ federal perjury. Tax Crimes are often charged for failing to file a tax return or filing a false tax return because it is interfering with the administration of the internal revenue laws. Tax evasion has been effectively
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corporate accounting fraud that lead to the largest bankruptcy in U.S. history. Two investigate reports and subsequent court cases conclude that WorldCom executives were responsible for billions in fraudulent or unsupported accounting entries. How did this mammoth accounting scandal occur without anyone raising the alarm? Evidence suggests that Ebbers and Sullivan held considerable power and influence that prevented accounting staff from complaining‚ or even knowing‚ about the fraud. Ebber’s inner
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been discussed in the literature and have also been experienced by bankers and other financial institutions. Notable worldwide cybercrimes common in developing countries including Nigeria and Ghana are hacking‚ data theft‚ spreading virus or worms‚ fraud or identity theft‚ yahoo attack‚ and cyber terrorism. Hacking Hacking means unauthorized attempts to bypass the security mechanisms of an information system or network. Also‚ in simple words Hacking is the unauthorized access to a computer system
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purposes. Offenders who perform these unlawful actions are often referred to as hackers (Janssen‚ 2010). There are several different types of cybercrimes‚ however four of the most common cybercrimes are: cyber fraud‚ cyber theft‚ stalking‚ and hacking. Federal law classifies computer fraud as the use of a computer to initiate a deceitful misrepresentation of fact as an attempt to persuade another to do or refrain from doing something which causes
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MEDICARE FRAUD Bobby Brown Colorado Technical University Medicare Fraud occurs when someone intentionally falsifies information or deceives Medicare (www.medicare.gov). Strike force accused ninety-four people across the U.S. The charges are based on several fraud schemes including Physical Therapy schemes‚ Healthcare schemes‚ HIV infusion schemes‚ and durable medical equipment schemes (Long-Term Living‚ Aug.2010‚ vol.59 issue 8‚ p10-10‚8/9p). These schemes exceeded $225 million in false
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