ACC3323-01 (14519) Homework1-Elisena Gutierrez

Under the Foreign Corrupt Practices Act of 1977 (FCPA): a. No US person or company that has securities listed on US markets may make a payment to a foreign officical for the purpose of obtaining or retaining business (pay a bribe) b. Companies that have securities listed on U. S. markets must make and keep financial records that accurately and fairly reflect transactions of the company and must design and maintain an adequate system of internal accounting controls. c. Certain payments to foreign officials known as “grease payments” made to an official to expedite the performance of duties that the official would already be bound to perform are permitted. d. only A and B are included in the FCPA e. A, B, and C are included in the FCPA

GOVERNMENT INVOLVEMENT IN MEGA BANK As the money laundering saga continued to snowball, Taiwan lawmakers alleged former President Ma Yingjeou’s involvement in the illegal transactions. Ma was also the Chairman of Kuomintang (KMT), the second largest political party in Taiwan and the ruling party at that time, which was alleged to have used Mega Bank to conduct money laundering activities. In its defense, KMT released the results of an investigation by the Legislative Yuan, showing that none of the 174 suspicious transactions flagged by DFS had passed through Taiwan. However, political activists still found it difficult to ignore the possibility that Mega Bank had assisted KMT in cleaning up illicitly gained assets. Democratic Progressive Party (DPP) legislator Luo Chih-cheng alleged that Mega Bank had been used to empty out KMT’s assets, while Mega-New York was used to launder them. Another DPP legislator, Su Chen-ching, also highlighted the fact that the bank had increased its loan…

GOVERNMENT INVOLVEMENT IN MEGA BANK As the money laundering saga continued to snowball, Taiwan lawmakers alleged former President Ma Yingjeou’s involvement in the illegal transactions. Ma was also the Chairman of Kuomintang (KMT), the second largest political party in Taiwan and the ruling party at that time, which was alleged to have used Mega Bank to conduct money laundering activities. In its defense, KMT released the results of an investigation by the Legislative Yuan, showing that none of the 174 suspicious transactions flagged by DFS had passed through Taiwan. However, political activists still found it difficult to ignore the possibility that Mega Bank had assisted KMT in cleaning up illicitly gained assets. Democratic Progressive Party (DPP) legislator Luo Chih-cheng alleged that Mega Bank had been used to empty out KMT’s assets, while Mega-New York was used to launder them. Another DPP legislator, Su Chen-ching, also highlighted the fact that the bank had increased its loan…

Select the necessary words from the list of possibilities to complete the following statements. 1. The Foreign Corrupt Practices Act of 1977 prohibits 2. companies to maintain an effective system of internal control. Statements Under COSO, the control environment, risk assessment, the accounting information and communication system, control activities and monitoring are referred to as the of internal control. to foreign officials to obtain business and requires No single employee in a company should have incompatible 3. and conceal errors or fraud in the normal course of performing his or her job. 4. The two broad categories of information processing controls are 5. Controls that rely on segregation of duties may be circumvented by 6. A client's organizational structure. 9. allowing the employee to both perpetrate and application controls. environment includes such components as management philosophy and operating style, and 7. A form of insurance in which an insurance company agrees…

How can accounting information systems aid in the prevention of fraud? Do legislative activities such as the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act of 2002 really aid in the prevention of accounting fraud? Justify your answer.

2

A US construction company paid a bribe to a foreign government official in an effort to land a contract in the official‘s country. When word leaked out, the US company‘s CEO said, ―Bribery is a standard business practice in that country. Required: What is your reaction to the CEO‘s statement?

Many countries have now made money laundering a criminal offence. In some countries, such as the UK, Australia, Singapore and the USA, the criminal offences include those directed at accountants. In the UK, the basic requirements are for accountants to keep records of clients’ identity and to report suspicions of money laundering to the National Crime Agency (NCA). These obligations apply both to firms and to individuals. A firm must establish anti-money laundering programmes which help to reduce to the possible barest minimum, the impact of money laundering on the firm. There are specific regulatory obligations imposed on accountants and auditors in relation to detecting and reporting money laundering activities. As the audit manager of Queenstar Consults, you have been asked to provide a training session to the new audit juniors on auditors’ responsibilities in relation to money laundering. Required: (a) Prepare briefing notes to be used at your training session in which you: i.…

#24

What fraud schemes were reported to be most common in the ACFE’s 2020 Report to the Nations? Corruption Fraudulent billing Inappropriately reporting revenues in published financial results Misappropriation of assets by employees

Contrast the concept (how they are similar or different from each other) Illegal appropriation vs. corruption corruption vs. Fraud in the states Fraud in the states vs. illegal appropriation   explain the concept illegal appropriation Corruption Financial Statement Fraud

The Sarbanes-Oxley Act (SOX) contains all of the following titles that have a direct impact on forensic accounting and fraud except: Group of answer choices   Title 4 prohibits personal loans and requires certain financial disclosures. Title 11 provides a possible 25-year prison sentence for anyone altering, destroying, mutilating, or concealing a record, document, or other object (or otherwise impeding) for an official proceeding. Title 9 increases maximum prison sentences for mail and wire fraud from 5 to 20 years. Willfully and knowingly certifying financial reports not in compliance with the Act is now a criminal offense. Title 4 prohibits personal loans and requires certain financial disclosures.

WorldCom committed the largest fraud in U.S. history. What was the primary method WorldCom’s management used to carry out the fraud?

1. Is payment of bribes an unacceptable business practice within the U.S.? Justify youranswer with supporting evidence.