Case Assignment #1 – Accounting Fraud at WorldCom 1. Discuss the fraud at WorldCom in terms of the objective of financial reporting. How was the objective subverted by the actions taken by the managers of WorldCom? A. To begin, the primary objective of financial reporting for most companies is to provide useful information to capital providers. Essentially, the objective is “to assist in the efficient functioning of economies and the efficient allocation of resources in capital markets”
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CJUS360-1104A-01: Legal Elements of Fraud Instructor: Jeffrey Beck Phase 2 DB 1: Legal Sources for Fraud Nina A. Lugo October 12, 2011 In Madrid Spain, Escala, a Connecticut based business with a global network of companies and parent company Afinsa Bienes Tangibles, a Spanish company involved in commercial and trading activities were caught in a fraudulent scheme which allowed them to increase their revenues to over eighty million in 2004 and 2005. These transactions allowed them to meet
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Fraud Auditing and Different type of fraud Introduction Over the years, the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing
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Sarbanes-Oxley Act of 2002 Bus 102 – Dr. Sean D. Jasso John Chi 12/9/2010 Table of Contents - Table of Contents Introduction History of the Act Implementation Impact on Business Policy Analysis Conclusion Appendix References pg. 1 pg. 2 pg. 3 pg. 4 pg. 7 pg. 9 pg. 11 pg. 12 pg. 14 1|P a ge Introduction Corporate Scandals are business scandals that initiate from the misstatement of financial reporting by executives of public companies who are the ones trusted to run these
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extremely useful to a financial statement reader. Financial Disclosure has seen an increase in the last ten years due mainly to the implementation of the Sarbanes Oxley Act. The Sarbanes-Oxley Act was passed by Congress in 2002 to deter corporate fraud and unethical behavior. The Sarbanes-Oxley Act also known as
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result of scams such as the Enron and WorldCom. It came stated as a clear fact that since these scandals had unfortunately happened, it would create a new demand for forensic accountants. The Association of Certified Examiners said that occupational fraud losses cost organizations on the average of about a trillion dollars yearly. I feel with this being a known fact brings along the push for the services of these forensic accountants. Forensic accounting is a profession in which combines investigative
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Cybercrime CJA/204 September 21, 2012 Dave Harper Cybercrime Cybercrime/Traditional Crime Cybercrime is a crime that is done through computers it includes hacking, electronic money laundering and identity theft. Traditional crime is a form of crime that violates the law. The difference between cyber and traditional crime is that cybercrimes
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Stock……………………………………………….. 11 5.) HealthSouth Patients and Customers….………………………………………... 11 D.) Outcome and Fairness of Punishment…………………………………………………... 12 6.) 2003 SEC Civil Law Suit against HealthSouth………………………………… 12 g.) Charges of Fraud………………………………………………………... 12 h.) Inflated Earnings on Financial Statements ...…………………………... 13 7.) Punishment: Does it fit the crime? ...................................................................... 13 i.) CEO Richard
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on preventing acts of fraud against corporate executives and the preventive measures that can be used for that purpose. Probably the most important step in protecting against fraud is to start with the top executives to set the tone for not tolerating any type of fraud within the company. A great way to start is by educating the employees of the company in ways of detecting different types of fraud because the employees can be, by far, the best line of defense against fraud for the company as well
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The topic I have selected for research is counterfeiting. Many of us know that counterfeiting is a growing problem throughout the world. Most countries have some trade in counterfeit goods, but some have become notorious for producing and exporting large quantities of fake goods. One of the largest is China. China is the world’s largest producer of counterfeit goods, and has the largest market for counterfeit goods. Counterfeiters employ between 3 million and 5 million people in China alone
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