Corporate Fraud, Within Corporate Governance - 1645 Words

INTRODUCTION The past decade has seen the discredit and collapse of various high-profile corporations across the world. These scandals were inherently the result of fraud, scams, mismanagement, fraudulent reporting and audit failure among many other deficiencies present in the corporate governance model of various syndicates. Some of these made the very foundation of the financial markets unstable and open to financial crisis. The international and national community were compelled to more efficiently address the issues of corporate fraud, misconduct of management, corruption and weak audit measures. In this paper we will focus on fraud, mainly occupational fraud, within corporations and combat mechanisms available within corporate governance. â€Å"No entity is immune from fraud. Fraud indiscriminately affects all types of organizations regardless of sector, size, or geographical location. It does not distinguish between public or private entities, by what they do, by their environmental footpr int, by their level of sustainability, by their public profile, or by the number of years they have been in existence.† The consequences of fraud can prove to be dire for any organisation, from irreparable damage to reputation to possible bankruptcy. As per the Association of Certified Fraud Examiners (ACFE) Global Fraud Study 2014, survey participants estimated that the typical organization loses 5 per cent of revenues each year to fraud. If applied to the 2013 estimated Gross WorldShow MoreRelatedComparative Analysis Of Fair Value And Historical Cost Accounting On Reported Profit1659 Words   |  7 Pagesthe Dots: Bringing External Corporate Governance into the Corporate Governance Puzzle. (Ruth V. Aguileraab, 2015) Study the corporate governance and they focused on the internal governance mechanism that includes managerial incentives, controlling owners and board of directors etc. however in the current study researchers focused on the internal governance and external corporate governance roles is also discussed. That is comprised of the external corporate governance practices that are played toRead MoreThe Anatomy Of Corporate Fraud Essay845 Words   |  4 PagesCritique #1 The first article researched was The Anatomy of Corporate Fraud: A comparative Analysis of High Profile American and European Corporate Scandals. The abstract discusses the analysis conducted on the three major American accounting scandals; Enron, WorldCom, and HealthSouth, and compares to the three major European accounting scandals; Parmalat, Royal Ahold, and Vivendi Universal. Bahram Soltani (2014), also discusses within the abstract the different areas reviewed regarding why theRead MoreThe Course Fraudulent Financial Reporting And Corporate Governance Of Prof872 Words   |  4 PagesThe course Fraudulent Financial Reporting and Corporate Governance of prof. Hermanson is the great oversight of financial reporting and governance issues. The students are able to understand the roles of the board of director and board committees, the critique research on fraudulent financial reporting and the cycle of fraud through real fraud cases over the world. Indeed, I recognize the importa nce of corporate management over financial reporting. The three main things I learned from this classRead MoreCorporate Fraud Has Taken The World By Storm For Over The Past Decade1479 Words   |  6 PagesCorporate Fraud Introduction Overview Corporate fraud has taken the world by storm for over the past decade. The biggest fraud cases to ever occur happened in 2001 and 2002 and since then fraud seems to be more and more common around the world. According to Forbes.com (n.d) the biggest fraud cases to ever occur was Enron, Bernard Madoff, Lehman Brothers, and Cendant, with Enron being the largest accounting scandal to ever take place. Prior to Enron’s fraud scandal coming to light in 2001, theyRead MoreAnnotated Bibliography On Corporate Governance1268 Words   |  6 PagesChapter 1: Introduction to Corporate Governance â€Å"While corporate governance may not dictate the economic prospects of developing countries, it certainly plays an integral role in shaping them.† The word Governance is derived from ‘gubernate’, meaning to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the top and the middle level of management. Governance, in simple terms, means administering the processes and systemsRead MoreIT Corporate Governance Essays1599 Words   |  7 PagesCorporate governance is the responsibility of an organization’s board of directors (BOD). The internal auditor (IA), the external auditor (EA), and the information technology (IT) auditor all play important roles in the process of corporate governance. By using established frameworks established by the Sarbanes-Oxley Act (SOX), the Integrated Framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and the Control Objectives for Information and related TechnologyRead MoreThe Effect Of Internal Controls On Corporate Governance Associated With The Revelations Of In ternal Control Material Weaknesses And Their Subsequent Remediation812 Words   |  4 PagesArticle Critique #1 The first article researched was Changes in Corporate Governance Associated with the Revelation of Internal Control Material Weaknesses and Their Subsequent Remediation. The abstract discusses the problems associated with the lack of internal controls within a company. Additionally, the abstract discusses how fraud and material weaknesses can occur without the implementation of the proper internal controls. Johnstone, Li, and Rupley (2011) disclose that internal controlsRead MoreA Report On Occupational Fraud Essay1433 Words   |  6 Pages B Detection The 2014 ACFE Report on Occupational Fraud expressed that the longer frauds were able to go undetected, the more costly they became. One-quarter of the frauds in the study were detected in the first six months of their occurrence; and for those cases, the median loss was limited to $50,000. This is a more acceptable figure, considering that, the general median loss caused by frauds in the study was $145,000. Hence, we can see that early detection can prove to be less financiallyRead MoreIntroduction. The Course Fraudulent Financial Reporting875 Words   |  4 PagesIntroduction The course Fraudulent Financial Reporting and Corporate Governance of professor Hermanson is the great oversight of financial reporting and governance issues. The students are able to understand the roles of the board of director and board committees, the critique research on fraudulent financial reporting and the cycle of fraud through real fraud cases over the world. Indeed, I recognize the importance of corporate management over financial reporting. The three main things I took awayRead MoreHistory And Meaning Of Corporate Governance1450 Words   |  6 PagesCorporate governance is a key term to understand and it is increasingly important part of running a successful company. The system has evolved over the years, guided by the challenges and misjudgements of the corporate world. The following guide will help you look into the history and meaning of corporate governance and find out about the core principles of it. You can also read about the key models and guidelines that help companies implement strong corporate governance in the demanding and competitive