If this was not the case, Congress would not have enforced the Sarbanes-Oxley Act. In 2002, the financial scandals that occurred by multiple corporations proved that the accounting profession was in dire need of some regulation by the government. I predict that corporate fraud will remain the same based on the research produced during the writing process for this assignment. There is no fool proof way to completely diminish financial fraud or to protect investors. As people as a whole have proven time and time again, there are rules and laws and there are people whom break those rules and laws for personal gain.
Week Five Learning Team Assignment University of Phoenix Principles of Accounting October 3, 2011 BYP8-6 A). The first person to suffer negative effects if you do not comply with Gena Schmitt’s instructions will be the person that was responsible for maintaining the cash balance. There is a strong possibility that this person will be disciplined or could lose their job from this oversight. The person that will suffer if you do comply with the request is first and foremost you. It will be a violation of your personal ethics to overlook this error and falsify information to cover it up.
It uses Public money unnecessarily and is unfair to taxpayers. It makes financial reform going forward much more difficult. Protecting the markets for derivative products like CDOs and CDSs allows for a repeat of the risky practices that got us into the current crisis. And finally, by guaranteeing the corporate existence of large banks, we are maintaining their power and priorities and thus are not likely to see gains on predatory lending, foreclosure abuse, and other areas where reform is sorely needed. If we want to help the people who are suffering in this crisis and recession, then we should make financial policies with them directly in mind.
(Incorrect- This is the victim of vendor fraud.) | | | | Analysts and pundits. (Incorrect- They may be fooled by financial statement fraud, but they would not suffer as much as stockholders.) | | | | Stockholders and lenders. | | | | Points Received: | 5 of 5 | | Comments: | | | | 4.
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.
Another risk that the firm faces is legal. Just like employees can file lawsuits against the company other stakeholder groups such as suppliers and customers can also take legal action against the company. The unionization of employees is a risk that can affect the employee relations of the company. A union can ask for exorbitant pay raises which could force Walmart to raise its payroll expenses which would lower the profitability of the firm. A union also has the power to shut down the operations of the firm if the employees go on
Reporting Practices and Ethics Paper HCS/405 Reporting Practices and Ethics Paper In the world of financial reporting, numbers can make or break a corporation. Growing competition and diminishing profits are driving some companies to compromise their ethical standards and falsify corporate financial data. These deceptive accounting methods can cause a once thriving corporation to crumble into dust. Ethics must be at the forefront of any healthcare accounting department. Fiscal transparency within the income statement, balance sheet, cash flow statement, and statement of equity must all reflect honest and integral data in order maintain the financial stability of the corporation.
Ethicality of Accounting Activities The WorldCom case is an example of unethical behavior performed by a company by abusing accounting activities to reflect misleading financial information. In this case the main cause of this unethical behavior is greed and neglect by the executives that allowed and encouraged this behavior. On the other hand, WorldCom employee Cynthia Cooper is a prime example of ethical behavior that took place to uncover the wrong doing of individuals. Upon reading an article of a former financial analyst, Cynthia Copper’s mind was intrigued, an audit was conducted on capital spending. In the WorldCom and Cynthia Cooper case unethical behavior was evident in multiple departments and involved top key players that tried to cover up the fraud.
This account can be the target of fraud in the organization because it can be intentionally misstated and violate the accuracy assertions. Employees can easily misstate the amounts that a fundraising event actually cost the organization and pocket the discrepancies. The auditor should do analytical procedures and substantive tests in order to detect these misstatements. Additionally this account should be analyzed and compared to the bills the organization has on file. The final account that is on the balance sheet under the net assets and fund balances of the balance sheet would be the unrestricted net assets account.
This can also reveal internal issues that need to be addressed. For example, if an employee feels a lack of appreciation from the business owner or anger at their boss, this could lead him or her to commit fraud as a way of