proceedings. In the business world forensic accountants are used to help clarify and resolve a wide number of legal disputes, including shareholder disagreements, malpractice claims, insurance claims, business dissolutions, bankruptcy proceedings, and divorce proceedings, as well as fraud and embezzlement. ("Forensic accounting,") Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship
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existed for many decades, I have conducted research regarding the definition of white collar crime, the history of white collar crime, the different types of white collar crime that affect businesses directly and indirectly, goals of white collar crime, fraud statistics and the cost factors related to white collar crime. White collar crimes and business ethics play hand in hand with one another and often cross the line with one another into criminal behavior. White collar crimes have played a very
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corporate scandals that have been emphasized by the media. After all the recommendation and efforts contributed by the various parties to eliminate these scandals, however it is still happening and there is no sign of stopping or reduction of the fraud in the future. Though GP Ocean Food Sdn Bhd is a well-known company, but the former company directors of seafood exporter have been acquitted of charges of submitting misleading information to the Securities Commission (SC) in 2006. Some even
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Accounting 1 Ms. Harrington 2/22/12 Financial fraud was a word rarely herd of before the 2000’s, but as the economy got worse and worse it became a leading headline. Americans began to find out that some of America top companies had been intentionally altering their accounting books to appear stable. Some of these companies were taking the money for personal use and some to convince people to still invest with them. As well as top company’s being fraudulent there were new highs hit as banks
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insurance, the customer would be eager to have the work done. The only problem with Minkow’s insurance restoration idea was that it was all a fiction. There were no insurance restoration jobs, at least for ZZZZ Best. In the process of creating the fraud, Minkow was able to dupe the auditors, Ernst & Whinney into thinking the insurance restoration business was real. In fact, over 80 percent of his revenue was allegedly from this work. The auditors never caught on until it was too late. How Barry
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Ebbers Behind Bars In 2005, Bernard Ebbers, former CEO of WorldCom, was sentenced to twenty five years in jail in a very controversial ruling. There are many reasons in the World Com case that made sending Bernard Ebbers to jail the right thing to do. As a CEO of WorldCom, Mr. Ebbers had many obligations in order to run the company successfully; some of those obligations he fell far short on. The major one was not realizing when he was in too deep; instead of managing each of the new assets
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of interests between executives and their chief auditor.Misleading information provided in false earnings reports allowed Shareholders and employees to continue to investing in Enron. Misappropriation of funds invested and eventually Enron filed bankruptcy in 2001. The fall of Enron had an impact that caused loss of jobs for thousands, the loss of retirement funds for all employees and no returns for their investors. The unethical practices of Enron caused the public to lose trust in the financial
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the Sarbanes-Oxley act , there is a section call 302 that requires management to certify the accuracy of the reported financial statement. Then all corporations were forced to reform strictly to improve financial disclosures to prevent accounting frauds. After the Act, management introduced internal control in order to comply with all the Sarbanes-Oxley act requires for a corporations behavior. Today, all corporations are obligated to certify the company’s financial reports. They are also responsible
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deep discount concept consisted of using “power buying” or purchasing the largest possible amount of product at best term, then selling at discounts of up to 25% - 40% off retail prices. Phar-Mor Inc. had fictitious inventory, fund diversions and a fraud cover-up by management which costed its investors 500 million dollars. The first indication of financial problem came to light in 1988, when investigation of lower-than-expected profit margins revealed that Phar-Mor was being billed for inventory it
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earnings and the CEO at the time John Ragas, was charged with looting the company. The company subsequently went bankrupt. This followed a Securities and Exchange Commission (SEC) suit where Adelphia and executives were charged with extensive financial fraud. (Giroux, 2008). The charges were as follow: "Adelphia, at the direction of the individual defendants: (1) fraudulently excluded billions of
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