A Brief Note On Fraud And Criminal Deception

1211 Words Nov 9th, 2014 5 Pages
Fraud
There are many definitions for the word fraud available from many sources, for example, dictionary.com defines fraud in a fairly basic sense as “deliberate, deception, trickery, or cheating intended to gain an advantage” (Dictionary.com, 2014). However for the case of this report, the definition by google.com is more appropriate and thorough with “wrongful or criminal deception intended to result in financial or personal gain” (Google). In all instances in the definition of fraud however, it can be concluded that an act or instance of fraud is goes breaks the rules of modern society, and as we shall soon see can frequently break the rules of modern law, and lead to negative legal action against the perpetrators of the fraudulent act.
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Executives are unique in this sense since although other stakeholders may also have a financial interest in the company, they are the only stakeholder that can make claims to the value of their financial interest. Without auditors providing a (hopefully) unbiased opinion on managements’ assertions all other stakeholders, particularly shareholders, would be at the mercy of managements’ claims.
Shareholders
Shareholders of public corporations hold a special relationship with regards to the public corporations in modern business. Unlike many private companies shareholders of public corporations typically have no direct control over operations of their businesses. As shareholders they are entitled to their proportion of profits amassed by their company, through dividends, and are only limited in their potential losses as far as they invested into the company. Furthermore, shareholders’ influences over the company, excluding executives, only goes as far as having rights to vote proportionately to their earnings on a representative to manage the company (the executives).

Waste Management The explanations of the positions discussed above are important to understand, as they set the precedent of the roles of the different parties that were involved in the Waste Management
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