Contrary to some belief, accounting is not a “walk-in-the-park” career. Accountants do not sit at a desk one-hundred percent of the time crunching numbers that always add up perfectly. In fact, accounting fraud is one of the largest scandals found today. When an accountant enters an engagement with a client, who are they liable to? Certainly not just to the client, but also anyone who could negatively be affected by a material misstatement, as well as the government. These responsibilities are
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FORENSIC AUDITING As stated by Gordon Brown, the former Prime Mister of the United Kingdom, “what the use of fingerprints was to the 19th century and DNA analysis was to the 20th century, forensic accounting will be to the 21st century”. When people first see the word “forensic”, they naturally categorize it into a science-related field. According to Webster’s Dictionary, the term “forensic” is defined as “belonging to, used in, or suitable to courts of judicature or to public discussions and debate”
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internal control is working -Everything over $10,000 needs a signature (stamps) ACFE (association of certified fraud examiners --> results from misconduct of employees, managers, and executives) definition of occupational fraud - "use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing org's resources or assets." Fraud - A generic term that embraces all the multifarious means that human ingenuity can devise, which are resorted to by
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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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Introduction With the recent increase in financial crimes and business fraud, forensic accountants are in great demand. Forensic accounting is the practice of utilizing accounting, investigative, organizational, analytical and communicational skills to conduct examination into a company’s financial statements in legal matters (Crumbley, 2007). Forensic accountants can own their own accounting firms or be employed by lawyers, insurance companies, banks, or large corporations. The use of accountants
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A Ponzi scheme is an investment fraud in which the investor uses the investments from new investors to make promised payments to prior investors. A Ponzi scheme typically has little or no legitimate investments that are actually occurring. A scheme falls usually apart when the main operator decides not to continue with the operations or when new investors cannot be found. Many red flags of a ponzi scheme can be recognized. A main concern for this scam is the promise for high, consistent, and guaranteed
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Importance of forensic accounting and fraud awareness in Malaysia As a result of recent, highly publicized financial scandals; reported increases in occupational fraud; and heightened concerns over money laundering to support terrorism and racketeering, legislative mandates and public expectations have heightened the necessity to hrther define the auditor's and accountant's responsibility for detecting fraud within organizations. Successful fraud or forensic accounting analyses and findings reported
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Illegal insider trading is when nonpublic corporate information has influenced a trade when someone buys or sells. When someone uses this information it allows them to gain an unfair advantage over other investors causing the market to gain or lose money. If insider trading were allowed then people that invested would no longer feel confident to invest. The legal way to gain an advantage over other investors would be for them to obtain skills in analyzing and understanding accessible information
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quarters. In March 2004 he was indicted of fraud and conspiracy and in July 2005, he was convicted on all nine counts against him for the WorldCom accounting scandal that lost investors 11-billion dollars. In September 2006 he began serving his 25-year prison term at Oakdale Federal Correctional Complex in Louisiana. Should Ebbers have gone to jail? Legally, I would say that CEO would be held liable for the actions that sent their company into bankruptcy if it could be proven that they knew or should
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ACCT632-04 MS Business Analysis Using Financial Statements Spring 2016 Individual Project Name: Shenqian Duan Date: April 3 2016 Adelphia Communication Corporation Executive Summary: Adelphia Communications Corporation was founded in 1952 with a $300 license by John Rigas,-(Founder), Willaim T. Schleyer (Chairman and CEO), Ronald Cooper (President and COO) and Vanessa Wittman (EVP and CFO) in the town of Coudersport
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