Corporate Collapses and Scandals is one of the fraud cases that have been world widely reported. Most

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Question:

Corporate Collapses and Scandals is one of the fraud cases that have been world widely reported. Most of the fraud cases especially those committed in the accounting fraternity are attributable to the use of computers. Though the use of technology is something to be proud of at one hand, equally it is said to be devastating and have a catastrophic effect on any business more especially if there is an insolvent or bankruptcy. Provided hereunder are some of the well-known examples of corporate collapses and scandal cases:
1. Avid Scandal

2. Enron Scandal

3. Worldcom

4. Parmalat

You may pick 1 case from the 4 cases provided above, or pick any other case of your choice, do research and answer the following questions:

1) Describe the entity you have chosen, explain what type of fraud was committed and when
was it committed?
2) Why it has been committed and how it was committed: by who and what means were used
to commit such fraud?
3) How it was resolved and what were the financial implications to the company as a whole?

(40 Marks)