Climate For Scandal : Corporate Environments

1895 Words Jul 4th, 2016 8 Pages
1. Title: Climate for Scandal: Corporate Environments that Contribute to Accounting Fraud
(Crutchley & Marshall, 2007) studied Climate scandal that corporate environment contribute to the accounting frauds are not .therefore they have select the 97 firms that are under investigation in security and exchange commission for accounting fraud. They consider the corporate environment including board member, auditors, auditor committee etc. however it is observed that if there are more internal auditor on the audit committee and outside directors are limited in company than that company has more chances to accused of fraud instead of the company that has more external auditors and board member. moreover it is also concluded that companies that
…show more content…
2. Title: Accounting scandals, ethical dilemmas and Educational challenges
(Lowa & Hooper, 2008) Study the accounting scandals in the light of educational challenges and ethical dilemmas. They study the accounting scandals because they observed that accounting scandals are increasing in the business world. However they argued that accountant plays a key role in business or companies accountants of finance department and they are the key member of that department. Therefore said that accountant make financial statement, they assist in financial management and auditing of the financial statement. Furthermore they argued that it can be said that accountant play a critical role in good and bad corporate governance and ethical business practices.
However (Lowa & Hooper, 2008) argued that one if the key problem behind accounting scandals and fraud is the poor quality professional education. Professional student do not get quality education and they contribute to the accounting frauds and scandals. However they said that in universities ethics are not teacher to the accounting graduates and they do not get ethical education along with their professional knowledge and learning. Therefore when they enter into the business and perform their duties due to lack of ethical knowledge they also indulge in frauds and scandals.
(Lowa & Hooper, 2008) Argued that we are living in a money dominated world and legalistic
Open Document