Got a tricky question? Receive an answer from students like you! Try us!

Fraud - Essay Example

Only on StudentShare
Author : gonzalo62

Summary

Name: Instructor: Course: Date: Fraud The article, ‘The Fraud Factor; A Case Study’ by Mathias K. Kopetzky as indicated in the CPA journal outlines the norm fraud and ways that can be used as countermeasures to the norm. The author describes Herbert Kearns, a salesman and his future business partner, Simon Leary…

Extract of sample
Fraud

Leary on the other hand had a shy personality. These two future business associates met at an organization referred to as CCC Computer Corp, where Leary was the manager at the technical support and assembling center and Kearns was a noteworthy and store computer. These two were very proficient salespeople who often delivered more sales that the company would realistically be able to sale. The two worked for CCC for many years, but later Kearns quit the job due to low pay, and he decided to start his own business ventures. His planned to call his new business ‘Gamma Computer Inc.’ and with the help of Simon, he hoped to draw all customers to his new founded business (Wells 115). From the author, we learn that this new business showed tremendous growth in quite a short time interval. This was extremely easy for it to achieve since Herbert had learned enough while at CCC Company, hence he would easily apply business practices for all clients. Second Savings Bank, one of the largest financial corporations in the country supported Gamma in this corporation. Such help is also important as it enhances the market segment of the weaker company since people are always pulled towards a company that has noteworthy performance. From the author, we learn that Second Saving supported Gamma in a variety of ways. ...
Download paper

Related Essays

Fraud (3)
A corporate fraud exceeds the scope of workers stated positions. In most cases, these types of corporate frauds involve a series of individuals in all levels of management of an organization. Fraud can be detrimental to a community, company, or individuals who are normally on the receiving end of fraudulent activities. In addition, the latent negative consequences of fraud in any organization can be strategic, monetary, legal, or operational. The Peregrine Financial Group (PFG) was a brokerage firm that experienced high level of fraud for about 20 years while in business. Based in U.S, the…
3 pages (753 words)
Employee Fraud
This will ensure that they are correct and functioning in the right manner. 1. The auditors should help the management device means of preventing the fraud. The management should also put an internal control system that will help them prevent and curtail the fraud. This can be achieved by encouraging employees’ rotation in their duties. This will help remove the employee colluding with the customer from her position and hence will not have to give the customer the goods. This will also ensure that there is no collusion among the employees themselves to defraud the organization. To prevent…
3 pages (753 words)
Corporation Fraud
MF Global and its parent holding company (MFGH) were forced by federal regulators to file for Chapter 11 bankruptcy protections on October 31, 2011 (Bunge 3). Within the span of less than a week one of Wall Street’s pinnacle trading firms was reduced to heap of broken promises and over one billion dollars in missing investor and client assets. After the MF Global bankruptcy was filed, investigators from the Securities and Exchange Commission discovered that a subsidiary of MF Global, MFGI, had improperly “booked” commodity trading transactions that exceeded the margin capability of MF…
3 pages (753 words)
Financial Statement Fraud Schemes
This case involves several characters, namely; Mr. Karina Ramirez, the director internal auditor at Apollo Shoes Company, the engagement manager Mr. -Darlene Ward law, Mr. Arnold Anderson the engagement partner and the intern Bradley Crumpler (Timothy, Loretta, & Kenneth, 2011). The communication in this company entails the use of email messages because physical interaction is limited between the employees (Timothy, Loretta, & Kenneth, 2011). Based on this case it can be scrutinized that the company accountants has not been ensuring that all items are properly recorded for easy audit.…
4 pages (1004 words)
polly peck fraud
However, in spite of all these efforts, fraud still exists all over the world as seen in the case of Polly Peck Fraud. More than 20 years ago, city funds and small financiers were surprised as one of the safest bets on the London Stock Exchange imploded. The share price of an international trading corporation, Polly Peck International (PPI), collapsed following raiding of its premises by the Serious Fraud Office (SFO) at the center of the empire constructed by Asil Nadir, its apparently outstanding chief (Casciani, 2008). Asil was a 71-year-old British citizen of Turkish-Cypriot origin. When…
4 pages (1004 words)
Financial Statement Fraud
Since the perpetrators of financial statement fraud may be outsiders who collaborate with certain account department employees, it is imperative for concerned organizations to carry out surprise financial audits regularly to detect and prevent any potential incidences of financial statement fraud. This paper focuses on revenue recognition fraud by examining the background, real-time incidence, detection, and statistics related to revenue recognition fraud. Background of revenue recognition fraud Commonly known as timing schemes or improper treatment of sales, this category of financial…
3 pages (753 words)
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…
4 pages (1004 words)