Case summary:
In the 1990s, Person DK built a security systems company. His deals were based on handshakes and phone calls. Federal prosecutors determined that he is living a lavish lifestyle. He was first indicated on delinquent unpaid sales tax. He went to prison for falsifying record, abusing corporate loan programs, and conspiracy and he was released in the same year.
Due to this kind of financial scandal, companies started showing interest in forensic accounting. Association of Certified Fraud Examiners (ACFE) stated that
To determine: The following are the agenda for the anti-fraud training for the employees of the company.
Want to see the full answer?
Check out a sample textbook solutionChapter 15 Solutions
Business Esentials, Student Value Edition Plus 2017 MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
- You are required to assess key functions including risk management and compliance for J.P Morgan Chase, and present a written report based on J.P Morgan Chase on the following in 2,000 words: Risk management framework – Conduct an analysis of the risk management process/ framework implemented at the J.P Morgan Chase (including risk assessment and risk control mechanisms). You are required to report on key risks that the institution is exposed to and explain aspects of the framework, emphasizing the effectiveness of the risk management strategies used. Anti-Money Laundering and Terrorist Financing Strategies – Discuss with examples, J.P Morgan Chase approaches/ strategies to combat money laundering and terrorist financing issues. Statutory legislation and compliance - Explain the importance of financial institutions meeting regulatory requirements. Comment on specific legislation that J.P Morgan Chase must be compliant with.arrow_forwardHow should CPA's evaluate risks to integrity and objectivity when considering providing gifts to audit clients and/or client management or accepting risks from them?arrow_forwardManagement oversight on internal controls and communication is a key in successfully implementing the financial strategies of any organization. Management cannot do every single aspect in the company, and must rely on communication and ethical conduct to get business done. Review at least two news articles or publications about current and future trends in the management of internal processes and their impact on companies' performance. How does the specific authorization and management oversight of financial capital processes affect internal controls? Provide examples of failed authorization and successful authorization of internal controls and the financial capital outcomes.arrow_forward
- The fraud triangle identifies incentives, opportunities, and rationalizations as the three elements associated with most frauds. Describe how each of these elements is necessary for fraud to occur.arrow_forwardI just need help with clearification in this question business law, thank you To comply with accounting principles, a company that engages in software development must either “expense” the cost (record it immediately on the company’s financial statement) or “capitalize” it (record it as a cost incurred in increments over time). If the project is in the pre- or post-development stage, the cost must be expensed. Otherwise it may be capitalized. Capitalizing a cost makes a company look more profitable in the short term. Digimarc Corp. announced that it had improperly capitalized software development costs over at least the previous eighteen months. The errors resulted in $2.7 million in overstated earnings, requiring a restatement of prior financial statements. Zucco Partners, LLC, which had bought Digimarc stock within the relevant period, filed a suit in a federal district court against the firm. Zucco claimed that it could show that there had been disagreements within Digimarc over its…arrow_forwardConsider the following statement: “The public's perception of corporate ethics changed dramatically with the revelation of the unethical decision-making at Enron, WorldCom, Adelphia, Tyco International, Peregrine Systems and iVillage. The scandals took a toll on consumers' confidence and portfolios, and undermined their faith in the accounting profession. Corporate stakeholders have called for more transparent financial reporting and evidence of better ethical conduct”. Required: Describe and explain THREE (3) broad categories of fraud schemes that may arise base on the situation above. Give one example for each category.arrow_forward
- Subject: Business Ethics You are the Chief Finance Officer (CFO) of your business organization. Your company recently received a letter of authorization from a government agency (I will not mention the name anymore, but I am confident you know its agency). After going through your records, the government agency representatives reported to your Chief Accountant that your company has a tax payment deficiency of Php 10 million. Your Chief Accountant told you that representatives of the government agency could lower the flaw by half if your company is amenable to a particular settlement. As the company's CFO, what is your take on the matter?arrow_forwardWhat controls can be implemented to prevent or detect the fraud?arrow_forwardwrite an executive summary for a fraud examination report for WorldCom scandal detailing what actions you performed during the fraud examination, such as reviewing documents, interviewing witnesses, conducting analyses or tests, etc. Also, summarize the outcome of the fraud examination.arrow_forward
- Discuss the auditor’s responsibility to communicate fraud to the audit committee. When is the auditor required to communicate possible fraud to parties other than the audit committee and management?arrow_forwardYou are required to assess key functions including risk management and compliance for the Bank of America. You are to present a written report based on the Bank of America on the following: Risk management framework – Conduct an analysis of the risk management process/ framework implemented at the institution (including risk assessment and risk control mechanisms). You are required to report on key risks that the institution is exposed to and explain aspects of the framework, emphasizing the effectiveness of the risk management strategies used. Anti-Money Laundering and Terrorist Financing Strategies – Discuss with examples, the institution’s approaches/ strategies to combat money laundering and terrorist financing issues. Statutory legislation and compliance - Explain the importance of financial institutions meeting regulatory requirements. Comment on specific legislation that the financial institution must be compliant with.arrow_forwardYou are the compliance officer at the hospital in the case below. Discuss your concerns, if any. Then discuss how you might address the issue. Three years ago, when Suburban Hospital found itself in financial trouble, it hired Allan Hale as a senior administrator on the basis of his experience in revitalizing a large health care corporation. In reviewing hospital billing practices, Hale immediately noticed that the coding of a given medical condition significantly affected reimbursement. He instituted new policy such that, whenever there was an ambiguity in a patient's diagnosis, clerks would enter the most remunerative code possible. Hale has also found the billing department too cautious in its reimbursement claims for expenses such as interest charges for the facilities under Medicaid and Medicare programs. He has directed that whenever there is any doubt, staff should claim the maximum amount. As a realist, however, he has instructed accounting personnel to develop two…arrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON