Financial Statement Fraud Essay example
Masters
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
Revenue Recognition Fraud Name Course Name Instructor Name Revenue Recognition Fraud In many occasions, companies find themselves in situations where they have to record their financial statements in the respective books of accounts in order to enable auditing as well as predict their profitability…

Introduction

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 statement fraud is undeniably the most prevalent in many accounts departments of most corporations (Schrader & Toner, 2013). The revenue recognition fraud is normally a matter of the organization at large especially when the management has the intention of hiding some real figure from public and financial scrutiny for a good section of the financial year. The motivating factors for the management’s engagement in revenue recognition fraud may be due to a weak season where the organization predicts unimpressive financial prospects. ...
Download paper
Not exactly what you need?

Related papers

Describe and Consider Lessons for Auditors and Regulators from the WorldCom Fraud
The fraud was undertaken by representing line costs as capital, rather than expenses and inflating revenue on the financial statements. However, a team of internal auditors later on came to discover the fraudulent representation of financial statements and notified the Company’s board of directors and audit committee, who acted swiftly although the company had already become bankrupt (Albrecht,…
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…
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…
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…
Report on Financial Statement Fraud Scheme
The inventories were shared between the various stores of the company to boost sales. Various external vendors were arranged to ship merchandises of the company claiming fake discounts. Loads of merchandises were sold to wholesalers and then the receipts were spread to individual stores of the company. These illegal money was entered and circulated between the Antar family and was parked into…
The role of internal audit function in deducting and preventing the fraud
Auditing is mostly of two types: Internal and external audit. Internal audit team is a team appointed by the management of the company which aims at ensuring that the company is acting according to the rules and operations are in compliance to all type of internal and external rules. Internal audit prepares a company for external audit by evaluating the operations and checking for fraud within…
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…