How To Verify That A New Vendor Is Not A Shell Company?

Dishonesty has become common in the workplace. Dishonesty undermines the reputation of the company, its workers and can lead to serious ethical and legal dilemmas for everyone involved. Professionals avoid dishonest behavior not because they are afraid of being caught but because it is the right thing to do. Protecting the secrecy of dishonest co

Company X is committed to providing education for each employee to report unethical behavior and resolve conflicts without fear of retaliation. One such example would be the need to report employee theft. Employee theft is not only unethical but could also be criminal in nature. Regardless of employee status (entry level or upper management), each employee should feel it their responsibility to report any unethical behavior they observe. Employee theft can range from theft of money, time, office supplies or merchandise to providing proprietary information to unauthorized entities. These activities can result in a negative public image of Company X and should be reported as quickly as possible. Prior to reporting such offenses, each employee should ensure the accuracy of the evidence they will be reporting. There are various methods to report such abuses including but not limited to an anonymous toll free hot line number, verbal or electronic reporting to the local Human Resources office and the open door policy which encourages employees to approach members of management without the fear of

Throughout history and in our own time, legitimate accounting methods have been utilized to fraudulently engage in manipulating activities that results in illicit gains to the perpetrators and losses to individuals and financial institutions.

This review will address several issues associated with the legal, business, and ethics related with the case. First, it will address the legality of the case by reviewing the difference between a written and oral contract, and the results of recovering fees. Next, this review will analyze the business effect of the case as it relates to the monetary bottom line and Chuckrow’s attempt to protect his profits. Subsequently, it will highlight the unethical behavior of Chuckrow and its potential effects on future subcontractors’ trust in

Collusion occurs when a student obtains the agreement of another person for a fraudulent purpose with the intent of obtaining an advantage in submitting an assignment or other work.

(TCO 5) Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party to act in a way that causes injury or damage to that party. In our readings and discussions we have seen several examples of fraud in business. Using that experience (1) provide an example of a common fraudulent practice in business with an explanation of how the practice works and (2) name and describe each of the elements of the Fraud Triangle.

(Wells, 2011, p. 241). Bribery can come in many different forms but generally is defined as an act in which something of value is offered, given, received or solicited with the intent of influencing an official act. Illegal gratuities can be similar to bribes except these are usually given as a reward. Economic extortion is basically the demanding of money. “A conflict of interest occurs when an employee, manager, or executive has an undisclosed economic or personal interest in a transaction that adversely affects the organization.” (Wells, 2011, p. 242). These are not all corruption schemes that exist but have been determined to be more common than others and ones that should definitely be watched for when completing an audit or a full financial status review.

Rising costs of healthcare is a valid concern for many households in America. A factor in the cost of healthcare insurance is fraud. Fraud is often very difficult to detect. The magnitude of healthcare fraud is unknown. Initial reimbursement and payment and billing timeframe of 90 days allows for fast payment of services, however, many times before there is an indication of fraudulent billing the company has closed up and moved on. Fraud in American healthcare, costs American’s millions perhaps even billions of dollars annually. Without doubt, behind every act of fraud lies a lapse in ethics. This paper will review several pieces of literature to look

Ms. Green created company names that were similar to legitimate vendors of AAMC in which she then registered those trade names with the Maryland Department of Assessments and Taxation. She then created fictitious invoices for those companies as actual vendors of AAMC. Using the names that she created, she then opened bank accounts at several local banks. These financial institutions would serve as personal businesses used to receive payment in which she would personally profit from. As an employee of AAMC, Ms. Green reviewed the false invoices and signed off on them which indicated to the accounting department those invoices were approved for payment. Ms. Green also advised with each invoice that the checks generated to pay the invoice, should be returned directly to her versus mailing them out to the fictitious vendor. The accounting department had no way of knowing the vendors

In fraud committed against organizations, the victim of fraud is the employee’s organization. In frauds committed on behalf of an organization, executives usually are involved in some type of financial statement fraud; typically, to make the company’s reported financial results appear better than they actually are. In this second case, the victims are investors in the company’s stock. A third way to classify frauds is via the use of the ACFE’s occupational fraud definition, “the use of one’s occupation for personnel enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets” (ACFE, 2010). The ACFE includes three major categories of occupational fraud: asset misappropriations involves the theft or misuse of the organization’s assets, corruption involves the wrongful use of influence in a business transaction in order to procure benefits contrary to their duty to their employer, and fraudulent financial statements involving falsification of an organization’s financial statements for personal gain.

Corruption schemes have differences as well as similarities. Bribery is a scheme that impacts a legal deed by proposing, providing, obtaining, or lobbying something of value to change the outcome in a favorable fashion. On the other hand commercial is similar in that something of value is offered in exchange for a certain business decision. Illegal gratuities are perks given as a reward to an employee in exchange for a decision. Most of the time illegal gratuities influence employees to make decisions not in the best interest of the organization. Economic extortion has to do with an organization or individual making a payment that will bring unwanted attention or impairment to the organization. These types of corruption schemes are very similar; however the differences exist in the conflicts of interest. Conflicts of interest occur

When doing my research in my IHMO handbook going over the standards of ethical coding by phantom billing you would break the code of ethics, hypocritical oath, and the law. So even though it might cost me my job I would have to report the fraudulent behavior. Furthermore I would

According to Daniel F. Dooley (2008), a member of the Commercial Fraud Taskforce, financial fraud with private middle-market companies is on the rise. In fact, Mr. Dooley believes that he has seen more instances of fraud in the past two years than in the previous ten. He notes seven areas in which financial fraud has increased over the past few years:

In this case, a firm only has one purchasing agent who is also responsible for a vendor’s account. Because of this weak internal control system, the opportunities are ceased by the perpetrator (Purchasing agent) to fraud the company. The lack of proper segregation of duties led to the misappropriation of the company’s assets and distorts accounting records as a direct result of insufficient employees. Although a small firm may not be able to pay for the cost of proper segregation of duties, but such firm should think of its benefits and at least get a less expensive segregation of duties that can still prevent

This does not set a good example for the employees and can be harmful to the future of the company. Ensuring that bribery stops can solve many of the problems discussed above. Some feasible solutions are being recommended to help the company in both short term and long term. First of all, all employees including managers should be given training and education about bribery, corruption and what’s deemed illegal according to the law. Explicit measures should be suggested on how they can avoid supporting corruption and also where they can report to in case a situation where dishonesty is involved arises.