Unraveling the Details of 10 High-Profile Accounting Scandals written by: ciel s cantoria • edited by: Linda Richter • updated: 12/30/2010 Before digging into the dirty details of each of these major accounting scandals, we’ll take a look at some of the tools that were used to first detect them – including sophisticated accounting systems and advancements in high-tech communication. Technology Fighting Against White Collar Fraud Looking back at the 10 major accounting scandals that changed the business
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financial position it is in and for directors or people who run the business to make important financial decisions to ensure the survival of a business. The function of accounting allows a company to keep records of all its financial history and allows the organisation make decisions based on the information. A well known definition of accounting is ‘The process of indentifying, measuring, and communicating economics information to permit informed judgements and decisions by users of the information’ (Wood
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Hogan, C.E., Z. Rezaee, R.A. Riley Jr., and U.K. Velury (2008). Financial Statement Fraud: Insights from the Academic Literature. Auditing: A Journal of Practice & Theory, 27 (2): 231-252. 1. There is a significant amount of literature on the characteristics of fraud firms, providing support for the fraud triangle classifications and the list of “red flags” used in both SAS No. 82 and SAS No. 99. a. Pressures to meet analysts’ forecasts, rapid growth, compensation incentives, stock options, the
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THE WAKE OF the corporate accounting scandals that have dominated the business news for the last few years, as well as recurring announcements of large settlements in class action suits against major accounting firms, the prospect of a malpractice case against an accounting firm would at first glance seem attractive. Juries are presumably more predisposed to view accountants with renewed skepticism, when hardly a news cycle passes without some reference to accounting fraud, investigations, and the
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Accounting Career When looking at a career that one might want to do, there are many options of what one could choose to do. One of the fields that many people go into is accounting. Accounting is a good choice to go into because there will always be a demand for an accountant in any business. “Employment for accountants and auditors is expected to grow by 13 percent through 2022, according to the U.S. Department of Labor.” (Careers in Accounting) Not only is there a demand in accounting, but
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Executive Summary In this case of accounting fraud at WorldCom, we have identified problems which had grew as the business scale of WorldCom (formerly known as LDDS) expanded, its direction of business started to drift away when its attempt to merge with Sprint was terminated by the U.S. Justice Department and the telecommunication industry started to deteriorate in 2000. The managers, particularly Bernard J. Ebbers and Scott Sullivan, struggled to maintain the company's main performance indicator
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Plan – Template for Breach of Personal Information does not represent an official position of the American Institute of Certified Public Accountants, and it is distributed with the understanding that the author and the publisher are not rendering accounting, or other professional services in the publication. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Copyright © 2004 by American
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Settings Chapter 2--Why People Commit Fraud Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a common rationalization of fraud perpetrators? Answer The organization owes me I'm only borrowing the money No one will get hurt I don’t deserve more. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a primary control procedure to minimize the occurrence of fraud? Answer Dual custody Systems of authorization
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Introduction For at least 20 years, HealthSouth represented a new concept in health care. Its founder, Richard Scrushy was the embodiment of the American dream. His rise was meteoric, yet ultimately the empire he created collapsed due to fraud of his creation. Richard Scrushy Represented the American Dream Richard Scrushy came from humble beginnings. He was born in Selma, Alabama, dropped out of high school, married, and fathered two children. He worked in manual labor jobs, even
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CHAPTER 1 AN INTRODUCTION TO ASSURANCE AND FINANCIAL STATEMENT AUDITING Answers to Review Questions 1-1 The study of auditing is more conceptual in nature compared to other accounting courses. Rather than focusing on learning the rules, techniques, and computations required to prepare financial statements, auditing emphasizes learning a framework of analytical and logical skills to evaluate the relevance and reliability of the systems and processes responsible for financial information, as
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