Write a research-based case study paper on the potential impact of a multi-million dollar organizational financial statement fraud, and how such an event would affect internal employees and their morale, the organization's shareholders, stakeholders, vendors, customers, capital markets, and the local economy. You must consider all factors assuming your organization is one of the major global suppliers in the area.

Case/Scenario:

Given the state of the economy today you are to consider the unemployment factors of your 1000 plus middle level manager positions that are likely to be laid off. The 100 plus upper level senior managers with major compensation packages in excess of one million dollars in annual bonuses in addition to their already excessive salaries that are tied in to the financial performance of the company profits. If the Managers retire now they can leave with their bonuses and an additional one million severance plus a one million dollar guaranteed salary. If they do not leave they must wait until the financial statements are complete which prove to show profits at their highest level ever in the history of the organization yielding each of the top one hundred managers nearly $2.5 Million in base salary for year 20XX, plus their one million dollar bonus guaranteeing a 3.5 million salary versus the 3.0 million if they retire early.

However, if there proves to be financial statement fraud you as the Corporate Financial Internal Auditor and Certified Fraud Examiner need to understand what the repercussions are to both those managers who leave early and take the $3.0 and those who stay for the bonus and performance based pay of $2.5 Million plus $1.0 Million.

How do you handle this situation, what do you say to your 1000 plus employees about their jobs, their retirement funds, and their pension savings?

Keep in mind, when large organizations commit financial statement fraud in such large amounts (multi-million, multi- billion) they are often depleting employee saving accounts and pension funds to replenish funds they do not have readily available corporate payroll just before the organization is ready to fail, this is when the executives start putting out false rumors in a last attempt to save the firm and generate interest in their stock (insider trading) however it never works by then and the company collapses. If you need a detailed example please see the case of the Enron Corporation.

Assignment Criteria:

• Assignment Length: 5 pages minimum no maximum length restriction
• You must include at least 5 reference citations from scholarly journals. *
• You must use APA 6thwriting style.
• Do not write a summary of this case.