on the issue for an extended period of time there might be no recovery from the issue and the accountant could be fired, or worse, the company could go under. Another situation for misrepresentation of figures could be from hiding money, which is fraud, in relations to taxes or personal gain. The consequences for this are of course a hefty fine and imprisonment. Companies do this very frequently but not all get caught. Companies and accountants will do this to try and squeeze every dollar into their
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agencies and even the government are all victims of both fraud and theft on a daily basis. Business owners are sometimes blindsided by these actions and may be unaware of the fraud due to lack of accounting experience or expertise. In almost every community, large or small, there are news stories about theft from employees. In several cases, unfortunately, the theft is from those entrusted to perform accounting functions. By the time fraud or theft is detected, sometimes thousands and even millions
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Corporation® and WorldCom® Your Name October 31st, 2012 FIN/486 Instructor Enron Corporation and WorldCom In the last decade, two powerful American companies, Enron Corporation and WorldCom, have become the models of accounting corporate fraud. The Enron Corporation was founded in 1985 by Kenneth Law in Omaha, Nebraska. The company later moved its operation to Houston Texas when InterNorth and Houston Natural Gas merged. This American organization offered paper, pulp, electric, communication
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all these millionaire managers wake up to discover they are not only now worth just a few hundred bucks, but that their jobs were disappearing. This situation was a reality for many WorldCom workers, because on that March morning America’s largest fraud at the time had been reported. WorldCom was a publicly traded corporation established in 1983 to provide Long Distance Discount Services (LDDS) (Internet Services, 2011). Through the acquisition of other businesses Worldcom became the world’s second
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to the collapse of Enron due to fraud, shady accounting practices, false reporting revenue, and general disregard of virtually every principle of business ethics. Kenneth Lay, Jeffrey Skilling and Richard Causey went on trial for their part in the Enron scandal in January 2006. The 53-count, 65-page indictment covers a wide range of financial crimes, including insider trading, making false statements to banks and auditor’s bank, fraud, securities fraud, wire fraud, money laundering, and conspiracy
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Consideration of Fraud within Small Business Organizations Introduction In recent studies made by Klynveld, Peat, Marwick and Goerdeler, LLC (KPMG), Fraud and Misconduct survey 2010 shows “The value of frauds committed by employees has double during the past two years with the average case now costing victims $3 million. The survey found that 61% of cases, there was no recovery of cash stolen, and that the average time to detect major fraud has increased from 342 days to 399 days. It
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In A Doll’s House by Henrik Ibsen, a woman named Nora is facing a life altering situation that stands to both ruin her social and private life. In dealing with the potential outcomes of the scenario, Nora comes to find that she has been living a convenient mistruth. Nora’s greatest and most damaging lies are lies she tells to herself. As is seen numerous times throughout the play, Nora hides, withholds, and distorts the truth in order to please everyone around her, including herself. Nora is presented
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Jack’s investigation. Moreover, it should be said that the executive’s gift is evident also because a thorough and independent investigation was held. This is why, there are no reason to blame Jack in some personal reasons to dig evidences of Troy’s fraud. At the same time, the fraudulent use of corporate funds by one of the veterans is not so striking and even shocking as the attitude of the ethics officer Matt Thompson to the case since, initially, he practically ignores the allegations and attempts
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felony counts—securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the United States Securities and Exchange Commission (SEC), and theft from an employee benefit plan—on March 12, 2009. (Biography, 2011) Mail fraud includes any scheme that attempts to unlawfully obtain money or valuables in which the postal system is used at any point in the commission of a criminal offense. (Mail fraud, 2011) By using the
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Cyber-Crime Trends In the dawn of the 21st century, the evolution of new technology and science concepts have made changes to everyone’s daily life. Cyber-crimes are a creature that did not exist 15-plus years ago. Back in the day, before technology, were only the conventional crimes such as illegal behaviors people thought were criminal behaviors. However, in today’s time an individual must be extremely careful because not only are people combating traditional crimes but cyber-crimes as well. Cyber-crimes
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