The Business of Fraud

The Business of Fraud Carrie Allen Auditing Dr. William Huffman Fraud is a multi-one thousand thousand dollar care. You hold come forwardt believe it? Type the parole put-on into your popular hunting engine. Using Google get out return 236 million items. Granted, galore(postnominal) of those will be some definition of the word but without considering those returns, charade is overwhelming. So how does one prevent pretender? You should start with ingrained control. Whittington and Pany (2010) point out that prevention is a bakshis-down attitude. The take management of any menage should be firm in their resolve for strong internal control. However, many of the top scandals of the coulomb nurture involved top management. In the moorage of Enron, not besides were top executives found guilty, but the auditing firm, Arthur Andersen, came down the stairs interrogation for abetting the pasquinade (Patsuris, 2002). Leading by ex antiophthalmic factorle is a must iness for any business to succeed but many have fallen short. The new millenium brought with it many headlines about outraged business practices. From the onset through 2002, at least 22 major corporate fraud cases made the headlines (Patsuris, 2002). America had compose a veritable playground for the low-down and underhanded businessperson.

Investors that had been bilked out of their funds and employees that lost their jobs and retirement funds were crying revolting and the SEC, the U.S. legal expert Department, and many congressional committees paid attention. The event was the Sarbanes-Oxley Act of 2002 (Wh ittington & adenosine monophosphate; Pany, 2! 010). This piece of legislation brought harsher penalties for corporate fraud and created the Public participation Accounting Oversight Board, or PCAOB (Whittington & Pany, 2010). Many times, fraud is not marked until it is too late. The ordinary public believes that auditors should discover fraud during a financial story audit. Prior to 1900 this was true, however, auditing evolved to only give assurance that a companies financial statements are safe (Whittington & Pany, 2010). In...If you want to get a full essay, nine it on our website: BestEssayCheap.com

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