Corporate fraud as a dishonest activity for organizations that is considered as white collar crime has serious legal implications. Though it can be difficult to detect and catch, it is important to prevent it by creating effective and efficient policies for the organizations that ensure an efficient system of checks and balances exists in the organization for its physical and fiscal security. Whenever fraud happens in a company or organization, it often takes the form of hiding sources of revenue, overstating expenses or growth, or disguising payments made to individuals in the company. Often, fraudulent activities within the organization are complex in nature and have a gross impact on the financial nature of the organization. It is usually perpetrated by the company management and other employees are often unaware of these fraudulent activities (Mele, 2005).
Corporate fraud, as difficult as it is to prevent, often has a ripple effect whereby when one company collapses as a result of corporate fraud, other partner companies often feel this effect and sometimes even face collapse. When a company is involved in allegations of unethical behavior, for example accounting fraud, its stock falls fast and other companies in the same industry or sector and partner companies also feel the effect. There is need to ensure companies have strong accounting policies that prevent corporate fraud. These include having external auditors check and sign company expenditure and using internal controls in company accounting (Panda, 2006).
Governmental crimes...
Pension fraud is a type of white-collar crime, but it can assume many different forms. In "Guilty Plea in Fraud Case Tied to New York Pension," the underlying crime was bribery, which happened to be related to a pension fraud scheme. The State of New York runs and manages a pension for its residents. It invests money workers pay into the pension. In this case, state officials accepted about $1
Fraud and Abuse Case Healthcare fraud and abuse continues to threaten the country, costing the facility billions of dollars per year. Brodeur, (2007) stated that fraud is something difficult to understand because it is a contagious issue. Healthcare fraud and abuse according to Brosman & Roper (2007) is the most profitable thing one can take part in if he/she is a crook, it avoid all channels and legal procedures, in nutshell,
Fraud is an important consideration in the area of legal contracts because of the fact that if fraud is present in the formation of a contract, the contract can, and mostly will, be invalidated. To establish contract fraud, it must be established that the party committing the fraud knowingly misrepresented a material fact with the intent to defraud and that the opposing party justifiably relied upon such misrepresentation (Blair, 2009).
During this process you would want to collect any kind of financial information that will be relevant for the completing the audit. Once this takes place, you would want to establish a follow up interview with key personnel in the company. The idea is compare and analyze what you are being told by executives with actual documentation. Where, you would look for inconsistencies when comparing what the person is
Introduction Enron was one of the biggest business collapses, and one of the most egregious incidents during a period in the early 2000s when investor faith in the securities system was shaken by a series of scandals. The scandals varied in terms of their composition, but behind each of them was greed, the drive by senior management teams to defraud securities regulators and investors for their own gain. This paper will
Introduction Combating fraud and corruption in nonprofit organizations (hereinafter alternatively “nonprofits”) and/or non-government organizations (NGOs) is an especially challenging enterprise because of the nefarious methods that are used and the corrupt practices that extent to the highest government levels that are endemic to many of the countries served by these organizations (Menzel, 2009). Main Points to be Addressed 1. What types of fraudulent and corrupt practices are most common in nonprofit organizations? For
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