Fraud is an international act to misappropriate (steal) assets to misstate financial statements. There are many documented high-profile collapses of companies due to fraud. As the Enron and WorldCom scandals unfolded, many people asked, “How can these things happen? If such large companies that we have trusted commit such acts, how can we trust any  company to be telling the truth in its financial statements? ? Where were the auditors?”

These scandals caused the creation of the Sarbanes-Oxley Act in the US (NI52-109 Canadian Equivalent) requiring companies to maintain adequate internal controls and for senior officers to sign off on the company financial statements, among other things.

 

Discuss one company which has committed an accounting scandal. Provide details on the fraud committed and preventative measures which could have been taken by the company.

Fraud is an international act to misappropriate (steal) assets to misstate financial statement. There are many documented high-profile collapses of companies due to fraud. As the Enron and WorldCom scandals unfolded, many people asked, “How can these things happen? If such large companies that we have trusted commit such acts, how can we trust any  company to be telling the truth in its financial statements? ? Where were the auditors?”

These scandals caused the creation of the Sarbanes-Oxley Act in the US (NI52-109 Canadian Equivalent) requiring companies to maintain adequate internal controls and for senior officers to sign off on the company financial statements, among other things.

 

Discuss one company which has committed an accounting scandal. Provide details on the fraud committed and preventative measures which could have been taken by the company.

Fraud is an international act to misappropriate (steal) assets to misstate financial statements. There are many documented high-profile collapses of companies due to fraud. As the Enron and WorldCom scandals unfolded, many people asked, “How can these things happen? If such large companies that we have trusted commit such acts, how can we trust any  company to be telling the truth in its financial statements? ? Where were the auditors?”

These scandals caused the creation of the Sarbanes-Oxley Act in the US (NI52-109 Canadian Equivalent) requiring companies to maintain adequate internal controls and for senior officers to sign off on the company financial statements, among other things.

 

Discuss one company which has committed an accounting scandal. Provide details on the fraud committed and preventative measures that could have been taken by the company.

Fraud is an international act to misappropriate (steal) assets to misstate financial statements. There are many documented high-profile collapses of companies due to fraud. As the Enron and WorldCom scandals unfolded, many people asked, “How can these things happen? If such large companies that we have trusted commit such acts, how can we trust any  company to be telling the truth in its financial statements? ? Where were the auditors?”

These scandals caused the creation of the Sarbanes-Oxley Act in the US (NI52-109 Canadian Equivalent) requiring companies to maintain adequate internal controls and for senior officers to sign off on the company financial statements, among other things.

 

Discuss one company which has committed an accounting scandal. Provide details on the fraud committed and preventative measures which could have been taken by the company.

Answer rating: 100% (QA)

Fraud Fraud has been characterized by the Institute of Internal Auditors IIA as any illegal act characterized by deceit concealment or violation of trus t These acts are not dependent on any threat of ... View the full answer