CASE STUDY ATPB 313 – Accounting Theory & Practice SEM 2 2013/2014 (100 MARKS -10%) Instruction: Answer all of the following questions (10 marks for each question). CASE STUDY 1 (50 marks) Title: Motivation for earnings management among auditors in Malaysia Farisha‚ H.‚ Hafiza‚ A. H.‚ and Zalailah‚ S. (2012). Motivation for earnings management among auditors in Malaysia‚ Procedia - Social and Behavioral Sciences‚ 65(3)‚ 239-246. Required: 1. In your own words‚ summarize the article
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Syllabus School of Business ACC/556 Version 5 Forensic Accounting Copyright © 2012‚ 2011‚ 2009‚ 2008 by University of Phoenix. All rights reserved. Course Description In this course‚ students are introduced to the conduct of fraud examinations‚ including a discussion of specific procedures used in forensic accounting examinations and the reasoning behind these procedures. Topics include an overview of fraud and abuse‚ forensic evidence‚ substantive procedures for cash outflow irregularities
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the earnings management techniques employed by the management of Satyam. Earning management or creative accounting is referred to the manipulation or misrepresentation of the company’s financial earnings in order to achieve stable and positive financial position. This was achieve through directly or indirectly use of the accounting methods. Even though the manipulation may follow all the accounting standards and laws‚ they may go opposite of what the standards and laws were originally trying to
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further fraud. What happens to the good name that the Company has built through the years of good business? The reputation of a Company can also take an immeasurable toll which would mean lost sales or opportunities. There is the Public Company Accounting Oversight Board that is a private-sector‚ non-profit corporation created by the Sarbanes-Oxley Act‚ a 2002 US Federal law‚ to oversee the auditors of public companies. Its stated purpose is to protect the interests of investors and further the
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senior management was “cooking the books” for years to cover up his loses. The reason why senior management agreed to do this fraud is the belief in unique ability of their leader to fix everything later on. This case is known as one of the biggest accounting frauds in the corporate history of the U.S. This paper will analyze who was affected by this fraud‚ the motives behind it and what systems of control failed to prevent it. The major groups that were directly affected are investors‚ employees
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money losing Broadband Division was said to be worth $29 Billion or $37 a share. Excitement among investors and share holders and false accounting drove the share prices up. To support their false rate of growth Enron had to borrow more to fund capital projects. More borrowing meant higher debt levels which in turn weakened their earnings. Enron’s creative accounting strategies and partnerships then allowed for debt not be reflected on the balance sheets‚ artificially improving their forecasts. An
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Nortel Case Study Daniel Jensen Victoria Brown Mary Mantell Matthew Passariello Michael McBride ACBG 4646 Accounting Ethics and Professionalism Dr. Barbara M. Porco Term Project Brief History: The company was born way back in 1882‚ as a mechanical department that was created within Bell Telephone Company of Canada to manufacture telephones and telephone equipment for Canada. Eventually the company progressed to the manufacturing of switchboards. The manufacturing arm of the company
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behavior in business accounting. Dr‚Xaxx’s approach to the is topic is one used by many‚ understand a complex subject by simplifying it down to its base elements. How do we identify situations that might lead to fraud and how do we prevent it? First an understanding of why someone might commit fraud is need. The best way to identify when a situation might cultivate unethical behavior in accounting is to determine the reasons why people would choose to be unethical in their accounting practices. Once
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Parmalat accounting scandal Which factors were relevant in the Parmalat scandal? Describe the causes and consequences of the scandal. Parmalat scandal is one of biggest fraud in the world‚ for years the company can eluded responsibilities with financial analysts and investors but was in December 2003 when Parmalat went bankrupt. In this summary it can appreciate the most significant events: In 1990‚ Parmalat started buying milk producers around the world‚ in order to hide a huge debt
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There has always been a need for forensic accounting to investigate fraudulent activities for accountants and law enforcement professionals. Although there are initiatives in accounting education which focuses on the importance of accounting instructions and these initiatives also teaches students on how to learn accounting education and emphasize continuous lifelong learning and out-come –based assessment. Forensic accounting is a complex whole of accounting‚ auditing‚ economics‚ business concepts
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