...CORPORATE FRAUD & THE ROLES OF AUDITOR (BANGLADESH PERSPECTIVE) Submitted To: Tahmina Ahmed Lecturer Department Of Accounting And Information Systems University Of Dhaka. Submitted By: Group No. 02 ID 18003 18051 18053 18073 18089 18200 NAME Safiqur Rahman Mahadin Anik Mahmudul Islam Arnab Kumar Chakrabartty Abdullah Al Noman Namrata Chakma Date of Submission: November 11, 2014. 1|Page This Report Includes The Following Contents Chapter No. Contents Page No. 01.Introduction 1.1 1.2 1.3 1.4 Introduction. Scope of the report. Objective of the report. Limitations of the report. What is corporate fraud? Kinds of corporate frauds. Reasons for corporate fraud. Auditor’s role. Bangladesh perspective. Findings of the study. 03 03 03 04 04 05 05 06 09 10 02.Literature Review 2.1 2.2 2.3 2.4 2.5 03.Findings Of The Study 3.1 04.Conclusion & Recommendations 4.1 4.2 Conclusion. Recommendations. 12 13 05. References. 5.1 References. 14 2|Page CHAPTER 1 INTRODUCTION 1.1 WHAT IS CORPORATE FRAUD AND WHAT WE ARE GOING TO DO THROUGHOUT THE WHOLE REPORT? The term ‘Fraud’ essentially includes the use of deception to make some personal gains for oneself dishonestly obviously and create some losses for another within the organization or outside the organization. Although definitions of corporate fraud vary in different situations, most of them are based on these general themes. The term ‘Corporate Fraud’ usually includes activities such as corruption, misuse of accounts...
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...Role of Internal Auditors in the Anti-Corruption Battle John FlahertyThe Challengeh Bribery, and other illicit payments are contrary to the public good. They thwart the competitive process and circumvent laws, regulations, and procedures put in place for the public good. They divert funds from owners, shareholders, and are usually paid as fees, commissions, or are paid without record. The cost to the public totals millions of dollars annually. The US Government is aware of almost 100 cases in which foreign bribes undercut the ability of US firms to win contracts valued at $45 billion in the 12 months before May 1995. "Corruption occurs when someone has monopoly power over a good or a service, has the discretion to decide whether or not you receive it and how much you receive, and lacks accountability." (Robert Klitgaard, Controlling Corruption, 1988). The level of corruption in international business transactions continues to be a critical problem. Companies need both the motivation and the governance practices to discontinue these payments Role of Internal Auditors in the Anti-Corruption Battle John FlahertyThe Challenge Bribery, and other illicit payments are contrary to the public good. They thwart the competitive process and circumvent laws, regulations, and procedures put in place for the public good. They divert funds from owners, shareholders, and are usually paid as fees, commissions, or are paid without record. The cost to the public totals millions of dollars...
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... | | |Details of Subject | |Qualification |FNS60210 Advanced Diploma of Accounting | |Subject Name |Auditing and Reporting | |Details of Unit(s) of competency | |Unit Code |FNSACC602A |Unit Title |Audit and Report on Financial systems and records | |Details of Student | |Student Name | |Student ID | | |College | | |Student Declaration: I declare that the work submitted is my own, |Signature:...
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...Audit Week 2: Financial Statement Audits, Financial Statement Assertions and Audit Evidence Financial Statement Audit * A systematic process of objectively obtaining and evaluating evidence regarding assertions about the economic actions and events to ascertain the degree of correspondence between assertions and established criteria * Purpose: To enhance the degree of confidence of intended users in the financial statements by the expression of an opinion by the auditor Overall Objectives of the Auditor: * To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material aspects, in accordance with an applicable financial reporting framework * To report on the financial statements and communicate in accordance with the auditor’s findings Audit Process Overview: * Step 1: Client Acceptance and Retention * Step 2: Risk Assessment (Through understanding client business environment and operations Assess risks of material misstatement Assess Audit Risk) * Step 3: Audit Procedures Planning * Step 4: Test of controls (IF reliance on controls) * Step 5: Perform substantive tests * Step 6: Audit Completion and Reporting Financial Statement Assertions: * Assertions are representations made by management, explicit or otherwise, that are embodied in...
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...Firm employs over 3,200 professionals from various disciplines delivering value-added services to over 5,000 esteemed clients. We provide integrated solutions that draw on diverse and deep competencies in assurance, tax, transaction and advisory services. We uphold the highest standards of quality. In fact, SGV & Co. remains the only ISO 9001-certified professional services firm in the Philippines – a distinction we have maintained since 1996. Our track record has remained unmatched in the region. We have accumulated invaluable resources in our 67 years of operations - highly qualified and competent staff, state-of-the-art facilities and an enviable international network. SGV & Co. is a member practice of Ernst & Young, a global leader in assurance, tax, transaction and advisory services. Worldwide, its 167,000 people are united by shared values and an unwavering commitment to quality. SGV & Co. and Ernst & Young make a difference by helping our people, clients and wider communities achieve their potential. Our Values * • People who demonstrate integrity, respect and teaming * • People with energy, enthusiasm and the courage to lead * • People who build relationships based on doing the right thing FAQ SGV audits: » 54 of the top 100 corporations in the Philippines » 396 of the top 1000 corporations in the Philippines » 7 of the top 17 universal banks » 8 of the top 11 regular commercial banks » 4 of the top 8 savings...
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...Zenia Ochoa 06/06/16 Mod.160 Human resource issue report page-unit 2 HR Issues & Solutions Problem employees seem to exist for the sole purpose of giving HR and management a headache. They are problem employees and they are everywhere. No organization is immune to them. At best, they are little more than time eaters who keep you from being as productive as you’d like. At worst, they can be a threat to the stability of your work environment. Problem employees comprise a very small portion of the workforce yet manage to consume a disproportionate amount of HR and management’s time and attention. Very few employees set out to be a problem for their employers and those that do usually reveal themselves quickly. They tend to be disgruntled, suspicious, and apathetic employees and, generally, they have chronic attendance issues, performance issues, and disciplinary issues. And, thanks to the proliferation of employment and labor law information available via the Internet, they know just enough to effectively work the system to their advantage — particularly when it comes to state or federally...
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...The duties, status and liability of the auditor WHAT IS AN AUDIT?[1] The word “audit” comes from the Latin word audire which means “to hear” because, in the middle Ages, accounts or revenue and expenditure were “heard” by the auditor. An audit is the process of checking that the way an organisation presents information about its financial position (its ‘Financial Statement of Accounts’) is true and fair. In essence, ‘true and fair’ means that, in the auditor’s opinion, the company’s financial statements offer a true and fair view of its actual financial position, and that any assumptions they include are reasonable. We can say that, Auditing is works with evaluating organizations financial statements, systems, projects, process according to standards. It is also engaged with non-financial matters of an organization. Such audits can be performed to identify inefficiencies in an organization. Why Auditing:[2] Audits exist to add credibility to the implied assertion by an organization's management that its financial statements fairly represent the organization's position and performance to the firm's stakeholders. The principal stakeholders of a company are typically its shareholders, but other parties such as tax authorities, banks, regulators, suppliers, customers and employees may also have an interest in knowing that the financial statements are presented fairly, in all material aspects. An audit is not designed to provide assurance of 100% accuracy; rather it...
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...principles and objectives of Risk Management from the perspectives of both company directors and Auditors, explaining how you consider the appropriate assessment and prioritisation of recognised and documented risks could have possibly have prevents or minimised the impact of any of the recent prominent corporate failures worldwide. Table of Content Pages Executive Summary 04 Veiling Some Concepts regarding Risk 05 Why Should Firms Manage Risk? 06 An Example of Merrill Lynch 07 The Aims/Objectives of Risk Management 09 The Current Economic Downturn 14 Current RBS Failure and Risk Management 15 Recommendations 17 Conclusions 18 References 19 Executive Summary As per a Chinese Proverb, A smart man learns from his own mistakes, A wise man learns from the mistakes of others, And a fool never learns From the last decade risk management is the most researched and exciting area in the financial industry as it elaborates how to minimize and avert the hazard of risk from the portfolios of different assets and from the operations of financial institutions. Regulators and depositors mainly emphasize the risk management and according to them risk management is an essential ingredient to enhance the value of shareholders and increase their level of confidence. Risk management is the assessment...
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...JIT Task 1 Risk Management Risk Management From the last decade risk management is the most researched and exciting area in the financial industry as it elaborates how to minimize and avert the hazard of risk from the portfolios of different assets and from the operations of financial institutions. Regulators and depositors mainly emphasize the risk management and according to them risk management is an essential ingredient to enhance the value of shareholders and increase their level of confidence. Risk management is the assessment of risks to mitigate, monitor and control the probability or impact on uncertain events. Risk management methods vary from industry to industry for instance it cannot be same for project management, industrial process and financial portfolios. As a management view point risk management is an important tool which is the used in decision making because it is systematic and well structured. For better utilization of risk management in management‟s decisions, risk analyst‟s reports must be based on the latest and best available information. The cause behind the mentioning of the Chinese proverb above is that risk management is the only tool which differentiates good management with bad. From a bank‟s standpoint, the term is usually used synonymously with specific uncertainty because the usage of statistics allows us to quantify the uncertainty which is called the measure of dispersion. My objective is to define what risk is all about and then see why...
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...ROOTS OF A FINANCIAL CRISIS Most companies are currently faced with specific challenges, questions and concerns that are caused by today's uncertain economic environment. In times of market instability, there is an increased potential for management fraud as unexpected losses and financing difficulties create pressure on those who are concerned about the financial performance and solvency of their business. Decisions made in the past due to financial crises are constantly being reconsidered and old certainties questioned. Accounting has been evolving with the development of advancements and setbacks of society. The SEC has to constantly reevaluate their accounting policies due to past events and changes from various economic and financial crises. The complexities and debates that arise from the causes of a financial crisis result in revisions to accounting regulations and standards that seem to be quickly implemented in order to prevent future disasters. THE SECURITIES ACTS OF 1933 AND 1934 The Securities Act was Congress' opening shot in the war on securities fraud with Congress primarily targeting the issuers of securities. Companies which issue securities (issuers) seek to raise money to fund new projects or investments or to expand; thus, companies have an incentive to present the company and its plans in the rosiest light possible. The Securities Act serves the dual purpose of ensuring that issuers selling securities to the public disclose material information to investors...
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...Indiatimes|The Times of India|The Economic Times| More |Log In|Join| Stocks ------------------------------------------------- Top of Form NewsStock Quote Bottom of Form ------------------------------------------------- Top of Form | | Bottom of Form | | Home News Markets IPO Personal Finance Mutual Funds Tech Jobs Opinion Features Blogs Slideshows ET PortfolioET SpeedET NOW Stocks Market Live Regulation Global Markets Forex IPOs/FPOs/Rights issues Bonds Money Markets Commodities Real Estate Analysis Market NewsStocks in NewsViews/RecommendationsStock QuotesMarket Calendar You are here: ET Home » Markets » Stocks » Stock Quotes » KCP Sugar & Industries Corporation Ltd. » Directors report * Summary * Prices * Financials * Reports * Company Info * News * Competitors * ET Buzz Tracker New Directors ReportChairman's SpeechFinished Products KCP Sugar & Industries Corporation Ltd. BSE: 533192NSE: KCPSUGINDEQ58888: kcpsi IND: SugarISIN code: INE790B01024SECT: Sugar BSELIVE03:40 PM | 26 Apr 2013 18.00 Change: -0.25(-1.37%)Volume: 4,357 Open: 18.35Prv. Close: 18.25 Today: 17.95 52-Wk: 14.50 18.35 26.00 Bid: 0.00(0) Offer: 0.00(0) NSELIVE03:31 PM | 26 Apr 2013 18.05 Change:-0.25(-1.37%)Volume: 17,561 Open: 18.25Prv. Close: 18.30 Today 17.80 52-Wk 14.70 18.50 26.05 Bid: 0.00(0) Offer: 0.00(0) You can view full text of the Director's Report for KCP Sugar & Industries...
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...control system of VI-MID-ISLAND SERVICE (VIMS) Submitted To VANESSA OLTMAN Faculty of Management Vancouver Island University Nanaimo, BC, Canada (Nov/15/2012) Table of Content 1.0 INTRODUCTION 3 2.0 NATURE OF FRAUD IN CANADIAN NON PROFIT ORGANIZATION 3 2.1 TYPE OF FRAUD IN NON PROFIT ORGANIZATIONS 3 2.2 PERPETRATORS OF FRAUD IN NON PROFIT ORGANIZATION 4 2.3 IMPACT OF FRAUD TO NON PROFIT ORGANIZATION 4 3.0 COMPREHENSIVE APROACHE TO REDUCE FRAUD 5 3.1 UNDERSTANDING INTERNAL CONTROL 5 3.2 BENEFIT OF INTERNAL CONTROL 5 3.3 LIMITATIONS OF INTERNAL CONTROL 6 3.4 CONTROL MEARSURES IN PREVENTING FRAUD 6 3.5 SUMMARY AND CONCLUSION……………………….………………….8 4.0 REFERENCE…… ……………………………………………………………9 1.0 INTRODUCTION The Canadian non profit sector has one of the largest populations in the world, accounting for over 7% GDP and creating 2 million full time jobs for Canadians. Further discoveries was made that 78% Canadians donates money to non profit Organization irrespective of all walks of life and income bracket. These donations are received to address core issues like youth, health, safer environment, crime prevention, poverty irradiation and to name a few. Non profit organizations play an important role in Canada life and the increasing demand for...
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...provides attestations to the fairness and accuracy of a company’s financial records. Accountants and Auditors prepare and assess financial records to declare the fairness and accuracy of a company’s financial records. Auditors perform what is known as an audit which is a close inspection of a company’s financial records to ensure they are correct; during a financial audit all financial records of a company including ledgers, internal financial reports, official published reports, accounts payable, and accounts receivable will be examined. This type of inspection keeps a company honest and also reassures investors as to the financial status of the organization. Accountants must follow a common set of accounting principles, standards and procedures that companies use to compile their financial statements known as Generally Accepted Accounting Principles (GAAP) are a combination of authoritative standards and simply the commonly accepted ways of recording and reporting accounting information. GAAP rules attempt to cover such a broad field that it is filled with loopholes and allow for multiple ways of presenting the same data; these loopholes can be used by management to manipulate the earnings of an entity. During an audit the auditor may encounter “red flags” or circumstances that indicate the possibility that a material misstatement has occurred, when this happens the auditor must determine whether this misstatement is due to an error or fraud. In this paper we will examine...
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...relevant requirements, application and other explanatory material in the CICA Handbook – Assurance. auditing and assurance FOR PUBLIC ACCOUNTANTS PERFORMING AUDIT AND REVIEW ENGAGEMENTS BULLETIN Staff contact Chi Ho Ng, CA, CPA(IL), MBA Principal Auditing and Assurance Standards Department 277 Wellington Street West Toronto, ON M5V 3H2 Tel: (416) 204-3443 E-mail: chiho.ng@cica.ca Fax : (416) 204-3408 Auditing Considerations in an Uncertain Economic Environment Uncertainties in the current economic environment There is a possibility that the Canadian economy may weaken in the near term. This has been noted in various sources, including the economic forecast for Canada issued by the Organization for Economic Co-operation and Development. Heightened risks from renewed financial-market turmoil linked to the European sovereign debt crisis and high levels of household indebtedness are eroding consumer confidence. In January 2009, staff of the Auditing and Assurance Standards Board (AASB) issued a Risk Alert, “Auditing Considerations in the Current Economic Environment,” to highlight matters for auditors to consider when responding to higher risks of material misstatements of financial statements of entities significantly affected by the 2007/2008 downturn in the Canadian economy. This Bulletin updates the January 2009 Risk Alert to make reference to the Canadian Auditing Standards...
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...fraud cases. Both companies filed for bankruptcy and constituted the largest companies in American history to do so. The extent of the accounting irregularities and fraud being investigated and disclosed brought into question the effectiveness of financial statement audits. In addition, the criminal conviction of Arthur Andersen, LLP, one of the then Big 5 accounting firms, on charges of destroying documents related to the Enron case brought into question the ethical standards of the profession. 1–2 Assurance services are professional services that enhance the quality of information, or its context, for decision making. The two types are: (a) those that increase the reliability of information and (b) those that involve putting information in a form or context that facilitates decision making. 1–3 A financial statement audit is, by far, the most common type of attest engagement. The overall assertion, made by management, most frequently is that the financial statements follow generally accepted accounting principles. 1–4 A large corporation with securities listed on a stock exchange is required by the rules of the stock exchange and by the rules of the Securities and Exchange Commission to provide an audit report with the annual financial statements furnished to its stockholders. It also is required to engage the auditors to provide an opinion on its internal control. Apart from legal requirements, however, a large listed corporation recognizes that it must maintain...
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