a true and fair presentation of financial statement since they evaluate the company’s performance based on the company’s earnings which used to be the point at which the investors can make decision whether to invest or not. However, the case of fraud and manipulation in a company are still critical and need to be monitored by certain functional department as such to be the whistle blower for any irregularities that may arise in the company. In fact, over the last decade, there were various regulatory
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to do more research to see how many scandals such as these have occurred over the years before the act was created. Phar-Mor Scandal was a popular chain of drugstores in the 90’s. They were accused of mail fraud, embezzlement, bank fraud and transportation of funds received from theft or fraud. Once these illegal activities were discovered, it eventually leads to bankruptcy and over 5,000 employees out of work. Another Scandal happened with the Lehman Brothers Holding Inc, a financial service
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considering that creams, toothpaste and razor blades are amongst them. Another worrying sector is the one of electrical equipment in which we find fuse boxes, switches and other safety equipment under the seized goods. The increasing use of the internet to sell fakes (mainly medicines) and the fact that the high quality of fakes often makes identification impossible without technical expertise, increases the challenge customs face. One of the reasons for this explosion in trade in fakes is that
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because the accounting fraud, manifestations and hazards start to analyze the accounting fraud of China's listed companies the motivation to find out the real causes of the accounting fraud, and through drawing and learn from foreign countries in the prevention and treatment of accounting fraud experience, to present my accounting fraud prevention and treatment response. [Keywords:] listed company; accounting fraud; Governance 1, the listed company's accounting fraud and harm the performance
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Ponzi Scheme Corporate Finance A Ponzi scheme is an illegal business practice in which new investor’s money is used to make payments to earlier investors. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity. The returns are repaid out of new investors’ principal, but not from profits. This can continue as long as new investors line
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Fraud is defined as the, “intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right” (Fraud, n.d.). However, not all fraud is intentional. According to Kranacher, Riley & Wells (2011), there are four elements to fraud: a material false statement, knowledge that the statement was false when it was spoken, reliance on the false statement by the victim, and damages resulting from the victim’s reliance on the false statements (pp. 2-3)
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Assignment 1: Review of Business Fraud Tara Johnson Professor: Jim Ridilla, CPA ACC 564— Accounting Information Systems May 1, 2012 Assignment 1: Review of Business Fraud Compose a summary of the case. Include how the fraud was perpetrated, the characteristics of the perpetrator(s) who committed the fraud, the role the auditors had in the case, and the direct and indirect effects the incident had on the organization’s stakeholders (customers, vendors, employees, executive committee
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Assignment # 4: Bait and Switch [pic] Law, Ethics, and Corporate Governance 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. The fact that Betty drove three hours in one hundred degree heat may not necessarily have any bearing on whether or not the dealer must perform in accordance with the published advertisement. However
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timely manner that the customer will not be held responsible for the amount. Depending on the length of time between the fraudulent activity and the reporting of the fraudulent activity the customer could bear a portion of the responsibility. If the fraud is reported within 2 business days the
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WHAT IS CYBER – CRIME? Cyber-crime by definition is any harmful act committed from or against a computer or network, it differs according to McConnell International, “from most terrestrial crimes in four ways: they are easy to learn how to commit, they require few resources relative to the potential damages caused, they can be committed in a jurisdiction without being physically present in it and fourthly, they are often not clearly illegal.” Another definition given by the Director of Computer
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