¶ … cross examine the accounting fraud scandal that took place at Xerox, the main intention of this analysis is to know the causes and the effects of the scandal as well as the need of a good practice in business ethics, corporate management and the general oversight. Xerox was able to utilize a creative technique of accounting to give false presentation of its assets and liabilities, they also deceive the investors and lastly they were able to inflate their socks. The main players of the scandal were the chairman, CEO and other high ranking officials who took the advantage and enriched themselves (Gara, D. 2004). The high ranked officials made away millions of shillings at the expense of the stakeholders. This scandal highlighted the need for accountability and ethics in the governance of finance as well as corporate.
The analysis also aims to examine the strategic mistakes that led the Xerox Corporation into tough economical environment. Another focus of this analysis is how the fraud was perpetrated, the amount of money that was involved in the Xerox Corporation scandal. The manner in which the scandal was uncovered, the investigation and the prosecution of the crime, the laws that were violated, the outcome of the case as well as the best outcome that will be fair given the circumstance of the case.
The main source of earnings for Xerox Corporation came through sale type leases and equipment sales (Comer, M. 2003). The company had a tendency of entering into long-term sales type equipment leases. A series of changes in accounting practices that took place during 1997-2000 resulted into significant impacts on the financial statements in the company. The areas that were critically affected in the view of the financial statement are the techniques that were used in the recognition of revenues (Gara, D. 2004). For any change to occur in short period of time in...
flurry of ethical fiascos at companies like Enron, Tyco, Peregrine, Adelphia and WorldCom have spurred many corporations to take a close look at the rules that govern their corporate behavior. Enron, likely the most famous of these cases, involved accounting and other forms of fraud at many levels of the company, including the executive level. Clearly, the actions of these corporations represent a failure in the moral and ethical
Fraud Identify potential financial statement fraud schemes at Apollo In many instances the quantitative figures of companies can be misleading. The nature of generally accepted accounting principles (here forth referred to as GAAP), are such that they provide flexibility in determining appropriate financial figures. On occasion, management or executives may misrepresent these figures to make the company seem more or even less attractive during certain periods. For example, a company may take
Fraud Ethics Fraud in the United States: An overview Fraud has always existed in the United States, but a number of systemic changes in the way that business is handled have caused fraud to become more common than ever before, in both private industry and government. For example, according to the ACFE (Association of Certified Fraud Examiners) magazine Fraud, "the rise in contract management and the outsourcing of goods and services has created
Rite Aid Fraud Over the years, there have been numerous cases of financial fraud perpetuated within the organizational mainstream of major companies. Financial fraud is often a well-coordinated sort of white-collar crime that often -- but not always - requires complicity and collusion amongst financial accountants, top management and auditors. Rite Aid came to the limelight after the U.S. Securities and Exchange Commission announced that it would be filing accounting fraud
Fraud and Corruption in Nonprofit Organizations Recently, there has been a lot of media attention focused on cases of fraud and corruption in all the sectors of the economy. The nonprofit sector has been growing steadily and this offers a tantalizing target considering that the sector accounts for over $800 billion in revenues. The nonprofit sector employs almost 10 percent of all workers, and there are an estimated 70 million adults
Tesco’s Fraud in the Accounting Information System The Accounting Information Systems (AIS) plays a central part in the business computing structure of any organization. AIS deals with the classification, collection, storage, monitoring, and conversion of the company’s data into information utilized for internal control and reporting (Smith, 2016). Once an organization adopts an Accounting Information System, they can keep accurate records, and manage the assets of the organizations properly. The management
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now