A Audience About Issues With Fraud And Scandals

1909 Words Feb 18th, 2015 8 Pages
Specific purpose: To inform my audience about issues with fraud and scandals in business and how employers and employees of organizations can set measures in place to limit, if not eliminate fraud and scandals from occurring.
I. What’s the first thing that pops up in your mind when the word “scandal” or “fraud” is brought up? Going into accounting as a major I am constantly thinking of all the big cases of fraud that have happened in the past for various businesses such as Enron, WorldCom, Tyco, just to mention a few. These cases of fraud are the reason why we must end fraud.
II. Fraud is unavoidable, but businesses must do all that they can to keep fraud to a minimum in business.
III. I will talk about various issues
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3. The last part of the triangle is rationalization. This is when the individual committing the crime finds a way to justify doing the crime. Whether it is entitlement reasoning, temporarily borrowing the stolen funds, the individual will try and think of anything that will make their actions seem justified (ACFE, n.d.).
B. One of the most popular types of scandals is the ponzi scheme
1. What is a ponzi scheme you may ask?
a. According to Investopedia.com, a ponzi scheme is a fraudulent investment scam that promises high rates of return while taking on very little risk as an investor in that particular investment (Investopedia.com, n.d.).
b. This scandal relies on new investors to invest money to keep the scandal operational until new investments cease which the scheme runs out of funds to pay back to the investors and collapses entirely (Investopedia.com, n.d.)
Transition: Now that we have a good idea as to why fraud exists and an example of a scandal, I will talk about what happens when the beans are spilled about the fraud and when people get caught, in particular some of the largest cases of fraud and other scandals in business.
II. We all know that businesses such as WorldCom, Enron, and Tyco all committed some major cases of fraud, but what exactly happened that caused them to get caught?
A. When looking at what happened to WorldCom, according to the American Institute of Certified Public Accountants (AICPA), top executives gave directions to one of
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