Identify one (1) real-life ‘financial reporting accounting fraud’ that occurred post 1990 (i.e. in the last 30 years), in any country, and answer the following questions:

a) Summarise the key facts about your chosen ‘financial reporting accounting fraud’.

b) Explain which of Positive Accounting Theory’s (PAT’s) hypotheses predicted the practice(s) of the parties involved in your chosen accounting fraud.

c) Discuss what specific accounting regulations were violated?

d) What valuable lessons can the accounting community (incl. reporting entities and regulators), learn from the outcomes of your chosen accounting fraud?

e) Provide two (2) recommendations to the Australian financial reporting regulators, to prevent accounting frauds from happening in the future. (5 marks)

Answer rating: 100% (QA)

1 Accounting Fraud involving Satyam Corporation which was uneartherd in 2008 is most scandalous frau... View the full answer