Case Study The Rise and Fall of Worldcom This case study is about Bernard Ebbers CEO of Worldcom, Inc. and Scott Sullivan CFO of Worldcom, Inc. once they were boosted the company growth and they got awards. Later on they made frauds by using their influential tactics on employees and company’s board. Those are Assertiveness: it involves applying legitimate and coercive power to influence others by threatening or giving punishment. This tactic was used by sullivans office where they berated and
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THE ROLE OF INTERNAL AUDITING IN FRAUD PREVENTION AND INVESTIGATION. INTRODUCTION. Internal auditing is charged with the overall responsibility of reviewing, evaluating and monitoring the organization’s internal controls to ensure efficiency. Its functions include a detailed testing of transactions and balances, and performing routine or sometimes, random checks as a precautionary measure. During this process, an auditor might uncover fraudulent practices, which would otherwise have gone
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OCCUR HERE! | Sabotage, which is destroying a system, computer fraud, misappropriation of assets, financial statement fraud, corruption. Deliberate destruction to harm a system. (Cookie: data website store on your computer that identify the site & you do not have to log on each time you visit the site) | * The Association of Certified Fraud Examiners (ACFE) 2014 Survey Results Show: * 5% of revenues are lost to fraud (≈ >$3.7 trillion lost globally) * Median loss: $145
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phase that there is a pending motion to dismiss, in so doing a cost reduction typically coerces parties of innocence to resolve irresponsible suits of class action. (4) It puts a limitation on damages that are punitive through the elimination of fraud securities basically for creating actions with racketeer influences and the Act of Corrupt Organization that provide for treble damage. Limitations on a punitive damage will absolutely cause a reduction in an auditors cost of damages. (5) It puts
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Prohibitions under the Act C. Penalties for Violations of the Act 1. Criminal 2. Civil 3. others D. Defense under FCPA 1. Lawful payment 2. Bona fide expenditures E. Fraud/Scandal of the FCPA of 1977 1. Detection method 2. Importance of Early Detection 3. Big problems for small corporations/organizations 4. Types of fraud and who is involved 1V. Sarbanes Oxley Act A. The effects of Sarbanes-Oxley Act on corporate culture (1) Increase in accounting costs (2) Increased records-management
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prominent are the Copyright Act, the National Stolen Property Act, mail and wire fraud statutes, the Electronic Communications Piracy Act, the Communications Decency Act of 1996, the Child Pornography Prevention Act, and the Child Pornography Prevention Act of 1996. Congress recognized computer related computer-related crimes as discrete federal offense with the passage of the counterfeit access device and computer fraud and abuse law in 1984. So as you can see there are quite a few different statutes
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investors contribute money to the “portfolio manager” who promises them a high return, and then when those investors want their money back they are paid out with the incoming funds contributed by later investors. The person organizing this type of fraud is in charge of controlling the entire operation; they merely transfer funds from one client to another and forgo any real investment activities. On the other hand, a pyramid scheme is structured so that the initial schemer must recruit other investors
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White collar crimes are offences committed by persons who, by virtue of their careers, exploit technological, economic, or social power for corporate or personal gain. In 1949, an American criminologist named Edwin Sutherland illustrated typical attire of perpetrators, who were mostly politicians, high-ranking professionals and businesspeople. However, since Sutherland’s time, such crimes have ceased to be the exclusive domain of these groups. Nowadays, developments in commerce and technology have
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of a job for some and the loss of the reputation for the business involved. On August 8, 2014the Second Circuit abanded a defense that focuses on whether a plaintiff’s complaint definitively and specifically relates to one of the categories of fraud or securities violations listed in Section 806 of the Sarbanes-Oxley Act, but it nevertheless affirmed dismissal because the plaintiff former employee lacked a reasonable belief. The case was Nielson v. AECOM Tech. Corp. The plaintiff alleged that
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Whistleblowing and Sarbanes-Oxley Due Gbemisola Salako Dr. Oris Guillaume LEG 500 – Spring/ 2015 April 21, 2015 Question # 1- Describe the key characteristics of a whistleblower, and briefly summarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whistleblower reported and the effect of the whistleblower’s actions on both the whistleblower himself and the company. Whistleblowing can
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