Common Accounting Malpractices in the Philippines

748 Words2 Pages
bulb-icon

Recommended: The ancient definition of accounting

Common Accounting Malpractices in the Philippines

Going back to the definition of accounting, it states that it is a system where in it records financial transactions pertaining to a business. Accounting also measures the ability of a business, it process information’s to be reported to the management who's making decisions. Accounting is very complicated especially when it comes doing the financial statements. Yes, professionals have enough knowledge regarding accounting but there are times that they still make mistakes that sometimes can cause accounting malpractices. “Historically, the term "accounting malpractice" described a narrow field of claims by clients against their accountants for failed accounting services. Today, with concerns about the reliability of public financial disclosures and the increasing advisory role taken by accountants, the definition of the term "accounting malpractice" continues to expand.” (Flaherty and Youngerman)
Once you entered the world of accounting there are lots of responsibilities and difficulties you may face and encounter. In this case, there are times where we can't avoid malpractices in accounting which may affect an individual and an organization. The researchers chose this topic because they wanted to know more regarding this topic and being an accounting student they may encounter some related situations in the future. The researchers know that this topic must be considered for the good of the people involves in the field of accounting. If this topic will been studied it can give the people in the business some information that can help them to avoid and prevent accounting malpractices.
After this research, the researchers are expecting that they will meet the solutions regarding t...

... middle of paper ...

...e in the new global trade order, Mandaluyong City Philippines: Philipppine Institute of Certified Public Accountants, 46, 25-31.

Adams, E. (n.d). Fraud prevention: an investment no one can afford to forego, The CPA Journal, 76 (1), 56-59.

Christensen, J. (2010). Accounting errors and errors to accounting, USA: American Accounting Association, 65 (6), 1827-1838.

Clark, R.L. (n.d). Recognizing fraud patterns in accounting data, The CPA journal, 77 (4), 68-71.

Hammer, W.B. (1997). The accountant’s role in sustainable business, Mandaluyong City Philippines: Philipppine Institute of Certified Public Accountants, 50 (3-4), 28-29.

Madray J.R. (2006). New fraud guidance, New Jersey: American Institute of Certified Public Accountants, 201 (1), 51-56.

McNeal, A. (n.d). CPA’s role in fighting fraud in nonprofit organization, The CPA Journal, 76 (1), 60-63.

Show More
Related

  • Woolex Mills Preventive Controls

    1580 Words  | 4 Pages

    Financial statement fraud makes up a marginal (less than 10%) percentage of occupational fraud cases, but the median loss is significantly higher at $975,000. A fraud scheme occurring over a significant amount of time will likely result in much higher median losses. For example, a fraud scheme lasting more than five years could result in median losses of $850,000. Larger companies are more likely able to implement strong anti-fraud controls due to size and finances, therefore, smaller companies become more susceptible to fraud schemes due to lack of proper preventive controls. Preventive controls include: implementing internal controls, continually updating the company’s Code of Conduct, rotating jobs/duties, and

    Read More

  • Debenhams PLC

    2104 Words  | 5 Pages

    Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...

    Read More

  • Accounting Fraud, the Investor and the Sarbanes Oxley Act

    1981 Words  | 4 Pages

    Madura, Jeff. What Every Investor Needs to Know About Accounting Fraud. New York: McGraw-Hill, 2004. 1-156

    Read More

  • Fraud, Waste and Abuse Research Project

    3183 Words  | 7 Pages

    [17] Robert K. Elliot, CPA and John J. Willingham PhD, CPA, Management Fraud: Detection and Deterrence. New York: Petrocelli Books, Inc., 1980, pp. vii.

    Read More

  • Marshall Peterson Case Summary

    1377 Words  | 3 Pages

    Staff, L. (2012, November 20). § 2-201. Formal requirements; Statute of frauds. Retrieved March 5, 2017, from https://www.law.cornell.edu/ucc/2/2-201

    Read More

  • Ethics and Law in Dental Hygiene: Case Studies 16 and 17

    1560 Words  | 4 Pages

    Hanson, J. R. (n.d.). Fraud or confusion? RDH Magazine, 19(4). Retrieved 3 15, 2014, from http://www.rdhmag.com/articles/print/volume-19/issue-4/feature/fraud-or-confusion.html

    Read More

  • Business Fraud: Pyramid Schemes, Tax Fraud and Money Laundering

    1673 Words  | 4 Pages

    This paper discusses three common types of business fraud, which include Pyramid schemes, tax fraud and money laundering. Business fraud is highlighted by illegal and unethical business behavior which is very serious in the business world and calls for very punitive measures like lengthy jail sentences, being blacklisted in business and end to very promising careers.

    Read More

  • Richard Scrushy and HealthSouth

    2166 Words  | 5 Pages

    Weld, L. G., Bergevin, P. M., & Magrath, L. (2004). Anatomy of a financial fraud. The CPA

    Read More

  • Accounting Scandals: The ENRON Scandal in 2001

    1233 Words  | 3 Pages

    Accounting ethics has been difficult to control as accountants and auditors must keep in mind the interest of the public while that they remain employed by the company they are auditing. The accountants should take into account how to best apply accounting standards when company faces issues related financial loss. The role of accountant is crucial to society. They serve as financial reporters to owe their primary constraint to public interest. The information provided is critical in aiding managers, investors and others in making crucial economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting are:

    Read More

  • Cost Accounting: Its role and ethical considerations

    1039 Words  | 3 Pages

    Cost Accounting: Its role and ethical considerations Introduction: Accounting is the process of identifying, measuring, and communicating economic information about an entity for the purpose of making decisions and informed judgements. The major areas of within the accounting are: Financial Accounting, Managerial Accounting/Cost Accounting and Auditing- Public Accounting Managerial accounting is concerned with the use of economic and financial information to plan and control the activities of an entity and to support the management in planning and decision-making process. Cost accounting is the subset of managerial accounting and it helps management in determination and accumulation of product, process or service cost. Role of Cost Accounting: Increased competition and uncertain business conditions have put significant pressure on corporate management to make informed business decisions and maximize their company?s financial performance. In response to this pressure, a range of management accounting tools and techniques has emerged.

    Read More

  • Corporate Accounting Fraud

    1084 Words  | 3 Pages

    In today’s day and age, there is a lot of news that is related to corporate accounting fraud as companies intentionally manipulate their financial statements to show a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can show a better image of their financial well being by providing misleading information. This can be done by omitting material information from the books or deceitful appropriation of assets such as inventory theft, payroll fraud, check forgery or embezzlement. Fraudulent financial reporting will have an effect on the This includes but is not limited to; check forgery, inventory theft, cash or check theft, payroll fraud or service theft.

    Read More

  • Essay On Challenges Of Accounting

    1025 Words  | 3 Pages

    Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.

    Read More

  • Accounting Reflection

    707 Words  | 2 Pages

    From the first tutorial, ‘Current Conceptions of Accounting’, we had already change our prediction on accounting professional. At the beginning, we through that accounting professional would be more formal and format. From what we have learnt from the first two semesters of accounting, we need to do everything under the current structure, standards, and regulations. Accounting is a tool and skill that help us to achieve our career successful. However, the first tutorial activity, which require us to bring up our view of ‘accounting, accountability, or an accountant’ from a lifestyle magazine. This activity make us found that accounting could be just next to us, not just in the career field, but also could find it anywhere in our life. This activity has open up our mind of accounting

    Read More

  • The Importance Of Accounting In Our Modern Society

    2459 Words  | 5 Pages

    Accounting is so important in our modern society. It serves a variety range of place in our society. It serves a variety range of place in our soceity, from school to hospital, from business firm to government agencies. It's also the main force in regulation of taxation and industrial activity. It serves a great aspects on the development of mass-production systems, any way, it's a very important term in our modern soceity.

    Read More

  • History of Accounting

    3105 Words  | 7 Pages

    The history of accounting I feel is important in the learning, understanding, and developing of my foundation for my accounting career. In this report you will learn about the development of accounting. You will learn about the people who influenced accounting the most throughout the years. You will learn how accounting came about and how it was used in the ancient times. You will learn about the invention of the double-entry bookkeeping processes. You will learn how things were done before the birth of the double-entry bookkeeping process. You will learn about Luca Pacioli and the Summa. You will also learn about modern accounting and ACAUS.

    Read More

More about Common Accounting Malpractices in the Philippines

Open Document