JB Accounting Fraud‚ the Investor and the Sarbanes Oxley Act Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds‚ overstating revenues‚ understating expenses‚ overstating the value of assets or underreporting of liabilities
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for Enron‚ one of the largest energy companies in the world at the time. As an employee you have the option of owning stock in it and you also have a retirement plan with Enron. But what you don’t know is that Enron has been committing accounting fraud for a while now and Enron’s stocks aren’t really worth $90 and that they are soon going to file for bankruptcy. The executives haven’t told you this because if they told you the truth‚ you would take your money out and they would lose all of their
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The accounting fraud is frequent‚ widespread and familiar in many countries and organization. It brings a loss to firms and investors. But there is no research trying to explain factors comprehensively influencing it. The obyectives of the research are to test and explain the effect of the internal control effectiveness‚ suitability of reward‚ compliance to accounting rules‚ information asymmetry‚ management morality toward unethical behavior and intention to accounting fraud. More particularly
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are eleven titles to the Sarbanes-Oxley Act. The act is named after its main architect‚ Representative Michael Oxley and Senator Paul Sarbanes. Former President Bush is quoted saying that it is intended to “deter and punish corporate and accounting fraud and corruption‚ ensure justice for wrongdoers‚ and protect the interest of workers and shareholders”. Table of Contents: Page Abstract . . . . . . . . . . . . . . . . . . . . . . 2 Chapter 1 . . . . . . . . . . . . . . . . . . . . . 5
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customers. Ted Bridenstine‚ systems development manager at MoneyGram—a leading global payment services company—underscores the importance of fraud detection with the story of a 100-year old grandmother who had contacted MoneyGram after receiving a call that her grandson had been arrested and needed US$2‚500 for bail. Behind the scenes‚ MoneyGram’s fraud detection system flagged the transaction as suspicious. Analysts determined that it was likely part of a telephone scam and a MoneyGram representative
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to manipulate the computers processes‚ therefor that is a crime. Some different types of crimes that fall in this category include fraudulent use of ATM cards and bank accounts‚ credit card fraud‚ and telecommunications fraud. This type of crime is very common across the United States. Telecommunications fraud is one
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1. With such a difficult decision‚ the anonymous caller could either report the fraudulent financial statements or go along with top management and risk being caught or being blamed for the misstatements. It is possible that the caller would face legal trouble at some point in the future if she decided to sign off on the statements. If the bank were to discover the overstated financials‚ the extended credit would be immediately revoked. It is necessary for the caller to evaluate all of the
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the case. Therefore‚ Spitzer releasing the incriminating details of Wall Street firms to the public‚ though a bit unorthodox‚ is fair in my opinion. He did so for a rightful reason – to use the power of publicity to implant fears of committing frauds into Wall Street executives’ minds. He wanted to build a stronger deterrent against Wall Street firms’ ill practices. In addition to that‚ Spitzer’s actions are also legitimized by a rarely known New York State law called Martin Act. This Act‚ once
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goes to show that there presently a growing problem with our country‚ and it is called white collar crime. White collar crimes are very numerous in kind. New ones are always being invented by someone with a good scam. Embezzlement‚ tax evasion‚ and fraud are some of the more popular kinds. A person who has the power of controlling money in a business is most likely commit embezzlement. A shortened definition of embezzlement is "to steal money that is entrusted to Phillips 2 one." This is one of the
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maximize profit becomes true in this case. The brokers of Oakmont Company lie and cheat people in multiple business aspects. Referring back to the ethical framework of deontology‚ a world could not function properly if everyone lied‚ committed fraud‚ and laundered money such as they did. In the eyes of Aristotle‚ Jordan Belfort would be considered to have no sense of the golden mean and only the sense of excessiveness which is what he prided the success of his company
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