Financial Statement fraud and Revenue recognition fraud - Essay Example

Only on StudentShare

Extract of sample
Financial Statement fraud and Revenue recognition fraud

We can define financial fraud as an intentional act to deceive people through manipulated financial statements for personal gain (“Bank Negara Malaysia” 1). Financial fraud is crime under civil law and involves complex financial transactions conducted by white-collar business professionals with a criminal intention (“Bank Negara Malaysia” 1). Nevertheless, financial fraud derives numerous loses on the global economy and on the reference corporations where many companies collapse due to financial frauds. Additionally, financial fraud demeans investor confidence in financial reporting and lowers the efficiency of corporate governance. A financial statement fraud refers to an intentional misrepresentation of financial information that the corporation presents to the public. Notably, improper revenue recognition, failure to record incurred liabilities, and failure to disclose contingent liabilities are the most dominant financial statement frauds (Bradford 1). Cases of financial statement fraud are on the increase and the economic crisis catalyzes the problems. Nevertheless, most of the financial statement frauds relate to revenues recognition while accounting errors take the other proportion. As such, internal and external auditors should understand the dynamics of revenue recognition fraud and institute proper measures to curb financial fraud. ...Show more

Summary

Financial Statement Fraud and Revenue Recognition Fraud Introduction In the modern global market, the generally accepted accounting standards govern the code of preparing, presenting, and interpreting financial and accounting statements…
Author : rebekahdach
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Financial Statement fraud and Revenue recognition fraud"
with a personal 20% discount.
Find out more

Related Essays

Security Fraud and Manipulations Using Accounting Policies and Rules
With a lot of economic failures cases related to security fraud and manipulation through the use of fraudulent accounting policies and rules in international corporations, it is essential to understand the business practises that have led to loose of shareholders investments.
40 pages (10000 words) Dissertation
Literature Review: Event Studies and Abnormal Returns
This is the fact which traders often give importance to, as they think that event studies have partial role in bringing abnormal returns on regular or periodic investments (Getz, 2012). There is a time when events are fabricated to flourish, which is to secure firm value expected on a certain point of time.
12 pages (3000 words) Literature review
Revenue Recognition Policy: Metropolitan
The main aim of this memo is to show the result of the expenses and revenue recognition for Metropolitan environment service. The metropolitan provides cleaning services to his customers through collection, consolidation, treating and disposing off of the waste and hazardous waste materials.
5 pages (1250 words) Case Study
Accounting Fraud, Earnings Manipulation, and Creative Accounting
Accounting Fraud, earnings manipulation, and creative accounting Introduction Overtime, there have been high profile cases detailing fraudulent financial reporting such as those at Enron and WorldCom. This has heightened concerns on the credibility of the U.S.
6 pages (1500 words) Research Paper
Financial Statement Fraud Schemes
Currently the company is in a process of expanding the products it offers by making different types of shoes that meet different markets demands. For example the company is in the process of manufacturing PHONESHOES that are specifically designed for helping business executives to carry out their operation more efficiently and effectively (Timothy, Loretta, & Kenneth, 2011).
4 pages (1000 words) Essay
Report on Financial Statement Fraud Scheme
The reports revealed the facts that the company scheduled smuggled money as sales from foreign banks. The reports misrepresented the true value of accounts payable to creditors. The inventory was overstated and the audit reports were doctored. The company’s accounting policy recognized sales returns by crediting the respective amount and at the same time it also counted it as inventory.
4 pages (1000 words) Essay
Business finance-2
In the current investment world, people have different investment aims. One of the most renowned motives is earning income or returns on the investments value. However, economic research shows that using returns alone in selecting best investments option is not adequate.
20 pages (5000 words) Essay
Earnings Management: The Continuum from Legitimacy to Fraud
Earnings Management: The Continuum from Legitimacy to Fraud Question. Earnings management entails an extensive range of illegitimate and legitimate actions undertaken by companies and business organizations’ managements, affecting the entire legal entities’ overall earnings.
38 pages (9500 words) Research Paper
Financial Statement Fraud
Such financial statements that are crucial to an organizations accounts department include the balance sheet, the cash flow statements, profit and loss accounts, and the trial balance (Schrader & Toner, 2013). However, the process is not always rosy as sometimes it is marred with fraudulent incidences of all sorts with the most prevalent being the revenue recognition fraud.
3 pages (750 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT