Wgu Corporate Governance

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

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

Descriptions of the main aspects of the regulatory environment which will protect the public from fraud within corporations are going to be provided in this paper. A special attention to the Sarbanes – Oxley Act of 2002 (SOX) requirement; along with an evaluation of whether Sarbanes-Oxley Act will be effective in avoiding future frauds based on their implemented rules and regulations.

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

In the case of BSU’s fraud, a feat to this severity should never have occurred, There are several internal controls that can help a business or entity avoid this kind of fraud. Once this fraud case was discovered, BSU implemented several new internal controls. These internal controls include 1) requiring a direct report from the

reporting fraud should be increased. Fraud costs companies in the United States $652 billion dollars annually. Fraud is a widespread problem that affects every organization regardless of size, location or industry. There has been an 80% increase in FBI corporate fraud cases since 2003 (US Department of Justice, 2008) and a 26% increase in U.S. identity theft convictions since 2007 (Identity Theft Task Report, 2008). Audit teams need to be trained to incorporate more forensic accounting procedures into their audit practices and retain more forensic

The Sarbanes- Oxley Act of 2002 helps to make sure that companies are complying with internal control. If a company fails to keep track of their internal control, then they are subject to fines or imprisonment. The act also gives the companies executives the responsibility to make sure that the company has reliable internal controls. Under one part of the law, companies are required to develop sound principals of control over financial reporting and must verify that the controls are working properly (University of Phoenix, Axia College, 2009). Public Company Accounting Oversight Board also helps companies ensure that their finances are in order, because they established auditing standards and regulates auditor activity.

Many financial companies fail for various reasons that include fraud and the manipulation of assets within the company. The research done in the paper will discuss financial companies that have been affected because of fraud and the way they are ran. This will show how companies develop their organization amongst the managers and create communication throughout the Company. Also, there will be knowledge of competitive teams and what the companies bring to the table about while sustaining that business. Another way fraud develops is through the Shareholders in the company and how they control the stocks and make them

Fraud can affect a broad spectrum of individuals at any time. Companies and consumers are losing billions of dollars every year. The effects of such deceptions can way heavily on companies and consumers. Fraud can be committed in many different ways. It can range from employee embezzlement to email scams. With increasing frequency, fraud continues to occur. No matter what the news reports, without proper controls; fraud will still occur. Proper controls and training need to be put in place at companies and individuals need to have the tools readily available to know what types of fraud can occur and how to prevent it. The purpose of this paper is to show how the different types of fraud can affect everyone and how to mitigate and report the fraudulent activity.

Fraudulent actions by employees, customers and vendors cost organizations around the glove about $3.5 trillion annually (Kroll, 2012). Kroll feels a critical element in preventing fraud is creating a corporate culture that discourages fraudulent behavior. Conducting a fraud risk assessment will help

I am writing to you to discuss an important problem that every business owner has dealt with. Fraud is a very important issue that must be touched upon. Every year businesses lose millions of dollars due to fraudulent acts made by employees. Business owners and executives have been trying different methods to prevent it but it still happens.

Corporations should set up an effective audit committee to oversight the company operation. If company lack of an effective governance mechanism will lead to manager’s corruption. There is a conflict interests and a lack of surveillance of management by the audit committee contributed to the Enron collapse in 2001(Li,2010,p37). ASX gives some recommendations about how to make up an effective audit committee. An effective audit committee should be constituted all of non-executive directors ,a majority of them are independent directors, and there are at least there members. These ways can effectively improve the quality of financial report, establish an honest atmosphere, and improve the confidence of public to financial report’s truth and objectivity. An effective audit committee also should have a formal charter to more competently perform the audit committee’s duties(ASX,2010,pp26-28). These recommendations make corporate governance under oversight to take a more ethical operation.

As a result of all the recent fraud scandals in large corporations and fraud cases, investors concerns about fraudulent financial reporting has increased and therefore external auditors are getting the blame for not detecting fraud, while audit regulators are put into pressure to meet the public 's wants. In response, audit regulators (i.e. (AICPA, IAASB) have published a number of professional fraud standards (SAS No. 1: “Responsibilities and functions of the independent auditors”; SAS No. 99: “Consideration of fraud in a financial statement audit”; and ISA No. 240: “The auditor’s responsibilities relating to fraud in an audit of financial statements”). Nonetheless, the expectation gap remains wide today – the overall picture has not changed much and the problem of fraud in audit remains unsolved. “Estimated typical organisation loses accounts for 5% of revenues each year to fraud. If applied to the 2013

The first researcher which involved impact of internal control measures on preventing and detecting fraud:

Corporate governance refers to the mechanisms, processes, and relations by which corporations are controlled and directed. (Bhasin, 2013) It involves balancing the interests of the company and providing the framework of the company; including action plans, and internal controls. Internal controls are defined by the board of directors, and top management. They are necessary to help prevent fraudulent activity within a company. By implementing stronger internal controls, Satyam could have possibly reduced the impact that this scandal had on the firm.