Tyco International Accounting Fraud Case Study

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Tyco Accounting Fraud: Tyco International is an organization with operations in approximately 100 countries resulting in its claim as the largest manufacturer and servicer of electronics and electrical items across the globe. Actually, the firm designs and makes undersea telecommunications systems, electronic security systems, specialty valves, and fire protection systems. The company has also developed to become a major player in the several other markets including adhesives markets, disposable medical products, and plastics. As part of its development to become a major player in the global electronics industry, Tyco International has claimed more than 40 major acquisitions in addition to other minor ones. Accounting Fraud Carried Out By Tyco: Tyco International is a company that mainly reflects the present state of business in the United States. Before the accounting fraud was discovered among its top management, the company had registered huge profits for more than a decade mainly through acquisitions and financial manipulations (Kay, 2002). Through these measures, Tyco International had booming earnings that resulted in increasing stock value for more than 10 years. It's important to note that the profits and stock value were not achieved through growing productive capacity but through absolute fraud and accounting tricks. The company achieved such success by unscrupulous methods among its top management and the parasitic nature of its financial dealings. The
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