Accounting – Fraud case Satyam Systems, a global IT company based in India, has just been added to a notorious list of companies involved in fraudulent financial activities, one that includes such names as Enron, WorldCom etc. The Satyam Computer Services scandal was publicly announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified. The preliminary investigations by Registrar of Companies and confession by Mr. Raju revealed the balance sheet of Satyam for the year 2008 contained `cash and bank balances’ of Rs 5040 crore (US $ 1.12 billion) as against the Rs 5361 crore (US$ 1.12 billion) reflected in the books, an accrued interest of Rs 376 crore (US$ 83.85 million) which was described by Raju as `non existent’ , an understated liability of Rs. 1,230 crore (US$ 274.29 million) on account of funds was arranged by himself and an overstated debtors' position of Rs. 490 crore (US$ 109.27 million) as against Rs.
Dodd –Frank Act: In response to the Financial Crisis Introduction Understanding the changes brought about by the Dodd-Frank Act requires one to acknowledge what caused the economic crisis to begin with. The Dodd-Frank Act once called the “Volcher rule” started as an 11 page document which gradually grew over time the US economy encountered multiple of financial crisis eras. (Anand 2011). The US Banking System law increased the document to 29 pages. (Anand 2011).
The stockholders in this case filed a lawsuit against Beazer and some of its officers for "issuing false and misleading statements regarding the company's business prospects and not disclosing facts the defendants knew related to alleged improper lending practices in its mortgage origination business" (Burney, 2009, p. 1). This case was settled with Beazer's insurance company paying $30.5 million. In this case, the restatement of past financial statements wreaked havoc on Beazer Homes USA. It began with an internal investigation, which led to an investigation by the SEC and ended with several lawsuits and large quantities of money being spent to settle
In the tampering of an investigation of bankruptcy or fraud, an individual can be sent to prison for up to 20 years. Failure to comply with the SEC’s rules on record keeping could carry a sentence of 10 years (Carmichael et al., 2007, p.19). With the enactment of the Sarbanes-Oxley Act, overall, investor confidence with auditors in the U.S. has been
The Role of the U.S Federal Reserve, the Chairman, and board is to save financial institutions that are too big to fail, and to employ unconventional facilities in lending to make sure the world economy does not fall. In order to understand this you have to remember why the Federal Reserve came into existence. (Bernanke, 2007) In the years between 1837 until 1913 the United States was without a central bank, when during this time banks abused their power and perform fraudulent banking practices. They often managed business poorly and were unregulated. The need for a central bank came after the banking panic of 1907, then President Wilson signed into law the Federal Reserve act of 1913.
America Money Vault After watching the documentary America Money Vault, I realized that one of the organizations to manage money is the US central bank the Federal Reserve. Here, the money is considered, stored, moved, destroyed, lend and earn. But above all, they are guarded and not just cash. Also according National Geographic more than 80 years on the streets of Manhattan runs armored car with millions and sometimes billions with gold ingots. They brought in and taken out of the Federal Reserve Bank, which houses nearly a quarter of the world's gold reserves.
The Department of Veterans Affairs estimates there could have been a billion dollar loss owing to the hacking or unauthorized access to the information. It is important to note that thousands ofveteransreceived bills from large companies such as Bank of America, USAA and the Federal Credit Union bank. The veterans whom had accounts at these banks will not be comfortable banking with a bank where their information is not
Informative Speech Outline: Topical Organizational Pattern I. Introduction A. Identity theft is a crime where a person pretends to be someone else by assuming that person’s identity in a fraudulent way. Identity theft occurs when someone uses another person’s identifying information, such as their name, social security number, credit card or banking account numbers without their permission to commit fraud and to usually obtain monetary gains. B.
However, one thing that happens when a counterfeiter tries to scan the money is a warning comes up telling him that it cannot copy this because under law it is not allowed. If a person would like to find out if their copier has
They can easily use fraud to authorize payment for a false invoice. The accountant also should not be able to print checks and complete the bank reconciliation. It allows the accountant to perpetrate fraud because they have access to blank checks to write fake checks and then cover it up with their record keeping responsibility. Along with segregation of duties, this also violates independent internal verification. A different employee, separate from personnel responsibility for the information, should make the verification and should report any discrepancies to management.