For an in-depth review of different types of corporate fraud and their occurrences in the organization, this book provides different instances in which these kinds of incidences occur with a lengthy discussion on the observance of law as one goes on with financial reporting within the organization. The third party, which this paper reviews, contains chapters which discuss the fraudulent statements and their occurrence at the workplace. The aim of this book is to provide more efficient internal controls to avoid situations where there is a lack of financial accountability.
Chapter 12 begins with fraudulent statements, as is the name of the entire part. Fraudulent statements are defined as financial statements which provide information which does not reflect the reality of the situation. A discussion of the financial principles applied during reporting is done, outlining reasoning behind the accurate reporting of financial information for firms. Moreover, provisions of the Sarbanes-Oxley Act and its application on the ground are given as reinforcements to the ethical obligation for financial reporting. This is done for the benefit of the users of financial statements – a section which is also discussed herein. At the conclusion of the chapter, a review of statistics from the ACFEE 2006 national Fraud Survey brings different points that the chapter has outlined home. Among the key discussions in this chapter is the objective behind accurate financial reporting. It is noted that the responsibility to provide accurate information is placed on the organization to ensure that the public is not harmed based on false information that could be provided. Since the data is used by third parties who reference this information for different reasons including investment, it is necessary that a truthful standard be set for the organization to safeguard third party investors and data users.
Delegate your assignment to our experts and they will do the rest.
Chapter 13 further explores the fraudulent presentation of financial statements by sampling different case studies. In the first case study, a discussion of the different types of fraudulent financial statements is sampled. The specific issue sampled is fictitious revenues. This is a case where the company gives revenue figures that do not existent. In the second case study, a review of concealed expenses and liabilities are sampled. Fraudulent presentation could also take the form of leaving out important aspects of the financial statements that would put the company in a favorable position. Among other things, the chapter also discusses inaccurate asset valuation and prevention methods for financial statement fraud.
In chapter 14, which is also the last chapter in the book, the author discusses occupational fraud and abuse. Here, abusive conduct is one of the aspects considered. This is defined by law as conduct in the workplace by an employer or employee which is malicious and is considered hostile or offensive to the recipient of such action. The final chapter links abusive conduct and its place in fraud deterrence. Acting ethically at the workplace is necessary for the reduction and eradication of fraud, especially financial fraud. Ethical principles must govern the operation of individuals in the context of the workplace to foster accurate financial reporting through the implementation of checks and balances. Where abusive conduct is present, the workplace is not a safe environment for the implementation of checks, thus opening the doors for financial misrepresentation. The author finally offers concluding thoughts on the compilation of discussion chapters in the book.
Wells, J. (2007). Corporate Fraud Handbook Prevention and Detection Second Edition. New Jersey: John Wiley & Sons.