Week 1 Acc556

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Internal Accountant’s Report to Management ACC 556 This report will present the necessary information needed to understand and decide whether to perform a full financial status review before proceeding with the bid. The information covered will include: * The effect of occupational fraud and abuse on the company * U.S. governmental oversight of accounting fraud and abuse and its effect on the company Potential corruption schemes to be aware of in the company Recommendation of types of accounting evidence and methods of gathering such evidence to support the financial status review. Fraud deterrence occurs in several stages, and the key is to know that prevention is not to same as deterrence. First is the impact of controls…show more content…
Violations recognized in an organization are required to begin administrative or judicial proceeding. The outcomes of these proceedings typically offer a settlement or a hearing. Moreover, cases are reported to the SEC in official documents known as litigation releases or administrative proceedings. When the documents are reported as violations of the Securities Acts, they are labeled as Accounting and Auditing Enforcement Releases. 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
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