Participative Vigilance

With different industry definitions and viewpoints, fraud can be a tough issue for audit committee members to grasp for oversight purposes. The legal obligations of audit committee members have intensified because their standard duty of care and loyalty to the entity has increased in light of management fraud activities.

First, it is important to define what corruption is. The term, “corruption” covers a broad range of human actions,

According to Harvard Law School’s article, approximately two-thirds of companies in the U.S. are affected by fraud. However, whistleblower Hotline can be as defense against management overrides. The article noted that whistleblower could be more effective if it become as apart of the corporate compliance programs and a reward of any monetary sanctions collected to motivate the employees Also, the article mention that the employees

Workers who believe that their work environment is safe and secure and that their organisation cares sufficiently about their welfare to implement those policies, and ensure compliance, will work more efficiently and effectively.

Fraud is an issue that causes major scandals, although it is a very ancient scheme. Recent fraud events gave light to gaps that facilitated its events. Its extent was drastic by affecting financial markets that eventually trickled into global markets. Major organizations and countries worked cohesively and continue to address the gaps and, in effect, implemented strict compliance regulations to diminish and refrain fraudulent activities. Strict compliance regulations are examples of a fraud response plan the small family business could have implemented to refrain the perpetrators from fraudulent incidents, protect organizational assets and the organization’s going concern.

India’s domestic business has seen high levels of corruption; more commonly the fraudulent behaviours and bribery of government officials and civil servants. This creates an unlevel playing field between domestic business and foreign business. Evidently this seemingly small issue of corruption could potentially tarnish India’s position as favoured destination of foreign investment (Mendiolaza, 2012).

In China, corruption is so apparent that often people are disincentivized to owning businesses because permits and consultants cost too much and require bribes. Yet, bribes can cost the economy big money because essentially the corrupt businessmen are taking the money away from public services (111). The issues coming up in the future are that the governments that are corrupt might have negative impacts on other global economies and spread the norm of corruption. Yet, both countries do show the will to “purify the Party” which includes newly implemented rules against gluttony, adultery, and even playing golf under the leadership of Wang Qishan (113). In China a bigger issue is also the fact that the public is becoming increasingly involved in corruption scandals. Officials worry people will get carried away with excessive accusations (115). More issues stem from the type of political system that China has; they employ a nominal legal system that runs at the discretion of the Party leadership so this means that whoever is in power can change the entire political ideals. In India, they are based on a historical British political system with anticorruption laws but these laws are often not enforced. Yet, even when they are enforced, trials in case can last for up to a decade (116). In India, they are making moves to help out their corruption issues. They implemented the Aadhaar program

The company should also try to protect employee who tell when there is dishonesty or employees are not following the company policies or the employee are violating a company law. The company should try to protect the individual who will tell whether the practices of the company are being followed. The company could give incentives for those who help tell about the inconsistent practices of the

Values- Values are a set of general guidelines that underpin social norms. Values are ideas about the correct behaviours

The corruptin is the abusive and inefficient use of resources by trusted powers for private gain. Corruption is not committed to the rule of law, justice, human rights and the integrity of public service, and it hurts every one who's life, livelihood, or happiness depends on the integrity of people in a position of authority.Some times it's devastating impact is more visible . The governance ,transparency ,and fighting corruption is so important to sustaine economic growth.

Back in the day, you would be forgiven for thinking that the corruptions scams where perpetuated by leaders oblivious to the long-term impact of their deeds. But today's corruption scams are masterminded by people with such high levels of exposure it is dismaying.

Fraudulent, erroneous, and illegal acts committed by a public company, usually at a managerial or executive level, have been a very serious problem for many years and have prompted development of strict and updated regulations, such as the Sarbanes-Oxley Act, in an attempt to prevent these occurrences. Unfortunately, these new or updated regulations are not enough to prevent these acts from happening, thus not alleviating the auditors of their responsibility to detect fraud. Some methods that management and auditors can employ to prevent and detect fraud, errors, and illegal acts are: improving knowledge, improving skills,

Just as each person has a distinct personality, so does each organization. The value system of an organization distinguishes it from others and shapes the actions of its members. There are four important components that make up a Value system or Organizational Culture:

2. What measures can and should be taken to make it easier for corporate employees to ‘‘blow the whistle’’ on a fraudulent scheme they uncovered within the firm?

Corruption is a complex political, social, and economic anomaly that negatively affects developing and developed countries. It weakens democratic institutions, holds economic development, widening the rich-poor gap and certainly leads to governmental instability. The World Bank definition of corruption states that “…the abuse of public office for private gain”.