The Means Whereby IT Managers as Purchasing Agents Participate in Fraudulent

The case identifies struggle and problem faced by organizations outsourcing IT projects and allows us to ponder on how to manage outsourcing well.

Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service

The state of Virginia/ Northrop Grumman outsourcing case demonstrated that outsourcing requires strong management of the vendor, clear lines of ownership, and review of performance metrics to ensure there are no breaches of contract (Lebeaux, 2009). The organization needs to ensure that they have an individual that can provide oversight and management for the outsourcing company, otherwise deadlines will be missed and performance will be

Summary: The above article talks about how IT outsourcing is the most cost-effective way for companies to hire qualified individuals for specific jobs without having to commit to the significant cost or maintaining a year round in house team. IT outsourcing is

The readers should read this specific study to understand corporate fraud. Corporate fraud occurs more regularly than one may think, therefore, understanding what corporate fraud is and the history surrounding it would allow companies and accounting professionals to understand how to help prevent it from occurring within their workplace. In addition, the research provides vital information and history regarding SOX, PCAOB, and AICPA and the rules and regulations required with financial statement reporting and how to better implement rules and regulations to make the company a safer place of business. The research is also vital to companies and accounting professionals as it explains the type of people that commit financial statement fraud

The best way to protect executives against fraudulent acts is to establish an active system of monitoring. This will occur, using three services to monitor against possible misuse of their personal information. These protection services will watch for unauthorized activities at the major credit bureaus. In the event that there is some kind of issue, the individual would receive a phone call about these changes. This is when they can verify or deny that they authorized this kind of activity. (Biegelman, 2009, pp. 295 312)

Since that time, additional acts of legislation, including the Sarbanes-Oxley Act, and the Dodd-Frank Act, became law as efforts made towards combatting fraud. Further, the Public Company Accounting Oversight Board (PCAOB) and Securities Exchange Commission (SEC) Fraud Task Force now exist in an effort to combat, pursue, and prosecute financial fraud crime (Gupta, Weirich, & Turner, 2013). Despite these measures, the methods for combatting financial fraud need updates in consideration of the ongoing advances in technology. While the principles established to date provide a strong precedent, it is necessary for corporate managers to embrace advancements in information technology-based fraud detection to strengthen the corporation’s defense against financial fraud.

According to Corbett, trace back to the early 1990s, outsourcing came into practice for the first time. It was a time when severe depression covered around the U.S. and even those most competitive of its businesses suffered significantly. “Companies used outsourcing then to help streamline their operations and to regain their competitive strength. The result was an unprecedented period of economic growth during the latter half of the 1990s. as we enter the mid-2000s, today’s challenges may be even more pressing than those of a decade ago.” (Corbett, 15) It is the general result rather than a snapshot combined by a few specific evidences. This short revision objectively indicates that offshore outsourcing is not that threatening as proponent claimed. Organizations has benefited from this practice. And that is the reason offshore outsourcing continued and developed. History is a giant that people can stand on its shoulder. In the background of Globalization, information technology plays an important role. In the past, offshore outsourcing has contributed to the growth and development in the manufacture industry, as a sub category of offshore outsourcing, IT projects offshore outsourcing can also contribute a lot to the growth and development in the IT

In business, the outsourcing involves the contracting out of a business process to another party. In this case, USTech has outsourced its product to TaiSource. As a result, USTech enjoys TaiSource’s world-class research, design, and lower manufacturing costs. USTech gets the benefits of direct sourcing in China without the hassle of coordinating it. But this behavior has some inherent limitations. USTech is afraid that TaiSource could reap its confidential information and start its new brand in Mainland China. Therefore, a global enterprise should weigh the pros and cons of its outsourcing strategy.

Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the

This paper provides an identification of potential means whereby Information Technology (IT) managers, acting on the organization’s behalf as purchase agents with IT vendors, participate in fraudulent activities. Further included are a series of recommendations for measures and actions that chief information officers or chief technology officers should consider as mandates to reduce fraud and other unethical practices while protecting the reputation of the organization, and the infrastructure of the computer systems of the organization. Finally, the paper elaborates regarding how these identified measures reduce the frequency of fraudulent activities.

The ethicacy and social responsibility involved with the development of an effective software outsourcing strategy is a dilemma many American software companies are facing today. More specifically, the ethics of paying for software to be developed in third world nations including India, Pakistan and China for use in the United States, potentially in companies whose role is critical to national defense, is an area not as well defined as it potentially could be from an ethics perspective (Pratt, 2008). Exacerbating this ethical issue is the one of cultural variations being so significant with India compared to the U.S. and the costs associated ensuring cultural congruency (Miller, Anderson, 2004). In the vast differences of cultures there is ample opportunity for ethical lapses and for confidential data to be compromised (Rucker, 2003). Oracle Corporation has continued to move much of its core programming offshore to India and Pakistan, moving entire departments and divisions form its headquarters location in Redwood City, California. While any business has the right to move its operations globally where it can obtain lower costs and increase profits, it does have an ethical responsibility to fully disclose quality and security levels to key customers (Harrison, 2004). Oracle however has not been as forthcoming with these disclosures, often creating entire outsourcing divisions

In today’s information world, monitoring and securing confidential data in companies has become a trending issue as most of the fraudsters are covert which makes them difficult to identify. Occupational fraud refers to stealing a company’s assets such as money laundering, employee violations of the code of conduct, and theft. Most of the fraud occurs through fraudster vested interests. Company executives or staff commit fraud based on the fraud triangle which is opportunity, rationalization, and pressure. Based on these three aspects fraudsters tend to commit these crimes both internally and externally of the company. According to the survey conducted by ACFE, it is said that small organizations are losing 5% of their total revenues each year. In that survey, the highest occurrence of fraud was committed with misappropriation of assets with around 85%. Financial statements fraud fell to 9%, and corruption is 37%. Even though financial statement fraud was low in the survey, its costs are huge with a loss of 1 million dollars (ACFE.com). Frauds occur not only on the inside of an organization but also from outside the company. In a recent study, organizations face high pressure to protect their assets from hackers like those that broke

A business can not work out without an account system, which includes internal. Internal controls are used by companies to make sure financial information is accurate and valid. Strong internal controls are signs of a financially healthy company and protect the company’s integrity. Strong internal controls can also increase a company’s profitability. There are several types of internal controls that companies used to protect themselves such as: Segregation of duties, asset purchases, supervisor review, internal audits and adequate documents and records. This paper will discuss several topics from a case study about And the Fraud

It is important we distinguish what professional ethics and computer security is. Professionally accepted standards of personal and business behavior, values and guiding principles. Codes of professional ethics are often established by professional organizations to help guide members in performing their job functions according to sound and consistent ethical principles. In current times, most if not all organizations have some sort of code of ethics that its employees are supposed to follow. Violating the code of ethics usually results in severe consequences from the organization. Computer security has become one of the most important issues in organizations in fear of any kind of data lost. The ever-changing web, it has become a priority to secure information from loss as there it lingers a constant vision of malice to disrupt the web world security. The need for cyber security is at a crucial more than ever as the web is growing more and more. Having a resilient digital infrastructure is becoming more and more important. Cyber-security is very important for companies due to the ongoing digital changes and the increasing connections to the critical infrastructure. Cyber breach results in the disruption of critical infrastructures within a company.