Security Fraud and Manipulations Using Accounting Policies and Rules - Dissertation Example

Only on StudentShare

Extract of sample
Security Fraud and Manipulations Using Accounting Policies and Rules

More importantly, a wide variety of security fraud and malpractice of accounting policies are employed in the preparation of the financial report accounting of Enron, Madoff scheme, and WorldCom Corporation that lead into their bankruptcy. Nonetheless, the Securities Exchange Commission (SEC) seeks to deter fraud in financial statements of companies through laws, internal control systems and regulations. More significantly, the commission continuously seeks to detect misstatements, failure of disclosure of accurate financial information in records, documentation, accounting policies and procedures in changes of equity and explanatory notes accompanying every financial period statement of companies. In addition, this paper will look at the adherence to the International Financial Reporting Standards (IFRS) as stipulated by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) remains committed towards global standards. Finally, the paper looks at various fraudulent situations that could be avoided through adherence to stipulated accounting policies and procedures by management, accountants and auditors as they put shareholders interest first. ...
Download paper

Summary

The main aim of the thesis of this paper is to not only evaluate security fraud but also manipulation of accounting policies and rules used in financial reporting with particular allusion to the big corporate affected by auditors manipulations…
Author : vincenzospinka

Related Essays

Human Resource Accounting Policies and Practices: A Case Study of the Nigerian Banking Sector
The increasing importance and evolving role of HR is due to the changing views and structure of post-modern organisation. Traditionally, the business owner used to perceive the employees as a cost to business; whereas, now, they believe that costs to employees are very significant investment. In recent times, a number of theories and concepts have been developed for the betterment of human resources in order to increase the productivity, efficiency and effectiveness of the organisation for a success in the long run. Understanding and Importance of Human Resource Accounting Human resource...
5 pages (1255 words) Research Proposal
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...
4 pages (1004 words) Essay
Accounting Fraud, Earnings Manipulation, and Creative Accounting
financial reporting process, and also put into doubt the role played by management, regulators, auditors, and analysts in preventing accounting fraud. Businesses employ deceptive or fraudulent accounting practices such as creative accounting to match the expectations. Accounting fraud refers to an intentional and inappropriate falsification of a company’s accounting records such as the stating of sales revenue and/or expenses. Accounting fraud is geared towards making a company’s financial performance (operating profit) appear better than it is. The motivation for misrepresentation of...
6 pages (1506 words) Research Paper
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) Essay
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) Essay
Earnings Management: The Continuum from Legitimacy to Fraud
In understanding this phenomenon of earnings management, it’s important to have a wide overview of the legitimate managerial activities carried out in an entity and the fraudulent reporting that is spearheaded by accountants and the entire management of an organization. The management of earnings leans on the credibility of financial information which is adversely affected by legal or illegal undertakings. All managerial activities within an organization have various implications and potential effects on earnings management. Such activities are designed in a view to run earnings in a smooth...
38 pages (9538 words) Research Paper
article review: Accounting Fraud at worldcom
As the E/R ratio imbalance kept increasing, the managers sought to cook the books so as to prevent investors and government from getting the consistent results. 1. Case Summary WorldCom, the Nation’s second largest long distance Telecommunications Company filed for bankruptcy protection on July 21st 2002 revealing that it had overstated earnings in 2001 and the first quarter of 2002 by more than $3.8 billion. Further on August 8th of the same year the company again admitted that it had maneuvered its reserve accounts also affecting another 3.8billion. Substantial accounting fraud was charged...
4 pages (1004 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!