Accounting Fraud Is A Serious Matter

942 Words Feb 8th, 2015 4 Pages
Accounting fraud is a serious matter. It destroys a company and makes the level of the playing grounds, uneven and unethically. Accurate and honest accounting is the sole foundation of a successful company. Without honest accounting the company is open to error and possible legal matters. Many legal problems and deceptive accounting can cause mayhem and ruin people’s lives and may even cost their freedom. Tyco is a great example of accounting fraud. It complicated lives of many innocent people and suffered the consequences dearly. Tyco’s CEO and CFO, cheated and stole from the company creating a world of frenzy. Here is how Tyco wrote its name in the accounting fraud history book. Things can lead a company into the nasty, sometimes tempting, world of fraudulent living. Factors in accounting fraud are close stricken poverty of a business, greed, the economy crashing/crashed, and much more. Tyco’s CEO specialized in a greedy means of fraud. His lavish, over-the-top, life was a prime example of it. His yachts, parties and many pricey materialistic possessions provided a crutch to get more and more money.
Reasons. A lot of small businesses and a few larger businesses often commit fraud to try and stay above water before the slow crashing burn they inevitably endure. The businesses see their hard work slowly slip from their grasps and are willing to do anything to try and salvage it. These businesses will usually alter their revenue to reflect an income much larger than the…

More about Accounting Fraud Is A Serious Matter

Open Document