Business Fraud Strayer University ACC564 James Ridilla Jr. January 25, 2012 Business Fraud Stanford Financial Group was a privately held international group of financial services controlled by Allen Stanford. Stanford financial Group was comprised of several affiliated companies: Stanford Capital Management, Stanford Group Company, Stanford International Bank, Stanford Trust Company, Bank of Antigua and the Stanford Coins and Bullions. Stanford Group Company was a diversified financial
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involved in a series of criminal acts but whose criminal organization carried out the details. 2. Benford’s Law (1)定义：A fraud indicator that predicts the relative incidence of first digits of numbers in certain types of random data. (2)Benford Analysis Benford analysis presents another interesting approach to fraud detection. Its general use is to determine the likelihood that fraud exists in records. This technique is based on Benford’s law, named after Frank Benford who realized that the likelihood
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CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY The auditing standard and guidelines of 1980 (U.K) defines internal control “as the whole system of controls, financial and otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safeguard and assets and secure as far as possible the completeness and accuracy of the records”. This working definition is all embracing enough to serve
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Fraud is a serious problem for most businesses today and often technology compounds the problem. In addition, the role of the independent auditor in the detection of fraud is often questioned. (http://www.swlearning.com/accounting/hall/ais_4e/study_notes/ch03.pdf) Fraud is dishonest activity causing actual or potential financial loss to any person or entity including theft of money or other property by employees or persons and where deception is used at the time, immediately before or immediately
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for Personal Compensation Plan Daniel and Thomas (2006) states that if CEOs’ potential total compensation is more closely related to the price of stock and option holdings, the firms are more inclined to manipulate reported earnings. In the WorldCom case, in 2002, the CEO, Ebbers personally held 27 million shares of the company; he even borrowed some money to buy WorldCom’s shares (The Wall Street Journal, 2002). Hence, Ebbers had high
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WorldCon: A Case Study of WorldCom ACCT 424B Prof. R. Hayes May 12, 2011 WorldCom is a telecommunications company that was once worth billions but is now merged with Verizon after bankruptcy due to fraudulent activities. The question is what caused one of the largest US corporations began a spiral into financial ruin. WorldCom according to John Sidgmore, a former top executive of WorldCom, stated that WorldCom generated annual revenues of over $30 billion a year, has more than 60,000 employees
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respect to the information presented to them. The inconsistencies suggested that the auditors could have failed to become aware of the accounting irregularities in FCB’s records. The situation raised doubts with the auditors as to the possibility of fraud taking place during the course of the audit. STATEMENT OF LEARNING OBJECTIVES 1. Skills acquisition: • • • • • • Identifying indicators of
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LaToya Shaw Case Study 2-Internal Control Financial Accounting 504 June 14, 2015 Internal control is very important to any company. It protects a company’s assets, can stop fraud and embezzlement. According to the authors of our book, “Internal control is a plan of organization and a system of procedures implemented by company management and the board of directors designed to accomplish the following: safeguard assets, encourage employees to follow company policy, promote operational
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efficiency. 2. Management Accounting: this deals with internal information e.g. cost of goods sold, profit targets, variance analysis etc. This holds management accountable for decisions they make. As a result, they review, plan and coordinate amongst themselves to ensure smooth functionality. 3. Accountability: Businesses need to be held accountable for the actins they make. Otherwise there would be elements of greed, theft, dishonesty and fraud evident in the framework. Accountancy therefore acts
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activities in a world we seem to be aware of, but that we do not seem to comprehend. In the evaluating case of our behavior we can review our minds, body and emotions as the simplistic force behind our actions; however at the same time the hidden complexity involved in those actions does not allow us to pinpoint the reasoning behind some of our behaviors in certain situations. In the case for individuals involved in white collar crimes, their behavior has been difficult to identify and understand
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