eBARING BANKS THE MOST SHOCKING ALARM BELL ABOUT FRAUDULENT Introduction On February 26‚ 1995‚ the oldest British Bank’s declared bankruptcy due to fraud caused the warning bells for many other organizations about the level of danger fraud can cause. Nick Lesson‚ a guy who comes from a background of the working class‚ had been working for Royal Bank Coutts‚ Morgan Stanley for a couple of years until he finally joined the Barings. He was assigned a job in Barings (Jakarta) to sort
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B1 – Ethics‚ fraud and internal control at Bern Fly Company The main purpose that a good internal control must fulfil is to protect the firm’s assets from fraud and theft. As we can see from the description of Bern Fly Company’s case‚ the internal control within the company leaves much to be desired. As it can be read in the case the salespersons get commission promptly after each order taken by their customers without any control to check if that order is real or only a fictitious one. This
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Issues In Auditing and Professional Practice ASSIGNMENT QUESTIONS The questions in this assignment are extracted from the text book for this paper; Reference: Johnson‚ R. (ed)‚ Readings in Auditing Volume 2‚ John Wiley & Sons Australia‚ 2007. Answer the following 4 questions: Question 1: (Chapter 10 “Australian Wheat Board”‚ p135 Question 4) Discuss the lessons to be learnt from the AWB scandal. Question 2: (Chapter 12 “Fraud prevention and detection- further guidance”‚ p158 Question 3)
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AC572 You Decide Jan. 24‚ 2011 When evaluating this case using the three elements of the fraud triangle I have concluded that the potential pressures for Chris to commit fraud are greater than for others. The pressure is from Chris himself because he wants what others have or what he doesn’t have. This is due to the fact that Chris is young and impressionable may feel as though he doesn’t make enough money to obtain the material possession he desires or see others with. He may also be of
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In this brief case‚ a long-time and trusted employee of the Los Angeles Dodgers engaged in a large scale payroll fraud to embezzle funds from the organization. Over a period of several years‚ this fraudulent scheme cost the owners of the Dodgers several hundred thousand dollars. Contributing to the success of the fraud was the laxity of the Dodgers’ internal controls. Eventually‚ the fraud was exposed when the individual who masterminded the scheme was hospitalized on an emergency basis and
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With the development of technology‚ the operation of business has become increasingly complex. This has created the opportunity for people to commit fraud for their personal gain. The consequence of fraud issue can impede corporations achieving their business objective and incur huge loss. This paper is going to base on the case study by KPMG which is regarding about the fraud‚ corruption‚ and bribery issue in business in New Zealand and Australia. This report will firstly focus on discussing the
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In consequence of an anonymous phone call stating that a vendor scheme was costing the company‚ Cardinals Wholesalers‚ millions of dollars an investigation was started. A vendor scheme is a company that was created to pay vendor invoices for which it receives nothing in return. Based on evidence found Tri-State Trucking was identified as a shell company. A shell company is a fictitious vendor scheme. Tri-State Trucking was owned by Bill Carter‚ a former employee‚ and Mike Smith‚ a current employee
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Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points) Sarbanes-Oxley Act was created in order to ensure that controls were implemented and monitored by the regulating authority. Congress wanted to make sure that there was a specific standard and guideline for companies to follow in order to prevent fraud at such a large scale. When followed correctly there are controls set in place that are internal which are governed by the managers and checked upon by the Federal regulatory
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Deterrence theory suggests that if punishments increase‚ crime rates should decrease. General deterrence is the idea that by punishing one offender for a crime‚ other members of the community will be deterred from criminal behavior as well. Specific deterrence targets the individual; it uses punishment for one crime to deter the individual from preventing further crimes (Cullen and Johnson‚ 2016). Certainty and severity of punishment are the two primary concepts within deterrence theory.
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ways to punish a criminal would be through Deterrence‚ which is a form of punishment that uses the threat of severe consequences to urge individuals not to break the law. While using this approach‚ society views criminals as logical people who want to avoid these rash penalties. As we all know‚ not all criminals are logical. Criminals may be in an unstable state of mind‚ hence why they would commit the crime. This would be a disadvantage to using deterrence as a form of punishment. If all criminals
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