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More handpicked essays just for you.
Relevance of ethics within a global business environment
Ethics and social responsibility in global business
Corporate and financial statement fraud
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The case study covers ingenuity facing a consultancy firm. It is a reflection of a company whose products are becoming outdated in the market, and the partners are in dire need of coming up with a solution to solve this problem. The consultant came up with a brilliant idea of charging the minimum fee possible to be used in the company’s design. This was a good strategy for the company’s success in future (Lee and Fargher 284).However, the prospective success turned out to be a nightmare when one of the partners, Joe, realized that its workers had sent unfinished shipping to serve as collateral for a loan. This served as a shocker as the shipment of unfinished products for loan security is a case of ingenuity and is a fraud convictable in a court of law. The case further serves as a reflection of poor channels of communication within the company as the shipment was done without …show more content…
"A Guide To United Arab Emirates Legal System - Globalex". Nyulawglobal.org. N.p., 2010. Web. 13 Nov. 2016.
Beasley, Mark S. "An empirical analysis of the relation between the board of director composition and financial statement fraud." Accounting Review (1996): 443-465. Print
Bhasin, Madan. "Corporate accounting fraud: A case study of Satyam Computers Limited." Open Journal of Accounting 2 (2013): 26-38. Print
Jay B. Hilotin, Chief Reporter. "12 Dirty Tricks UAE Banks Play". GulfNews. N.p., 2016. Web. 12 Nov. 2016.
Lee, Gladys, and Neil Fargher. "Companies’ use of whistle-blowing to detect fraud: An examination of corporate whistle-blowing policies." Journal of Business Ethics 114.2 (2013): 283-295. Print
Miller, Dale, Bill Merrilees, and Raisa Yakimova. "Corporate Rebranding: An Integrative Review Of Major Enablers And Barriers To The Rebranding Process". International Journal of Management Reviews 16.3 (2013): 265-289. Web.
Tawalandana, Nilani. "Operational risk management under Basel ll-A case of UAE banks." (2010).
...: Wall Street Insider - Financial News, Headlines, Commentary and Analysis - Hedge Funds, Private Equity, Banks. Retrieved January 15, 2012, from http://dealbreaker.com/2010/06/wachovia-vp-had-good-reason-to-steal-money-from-bank-that-youll-probably-never-understand/
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
Reputation is a company’s biggest asset so you would think that organisations would avoid engaging in any sort of business that would put its reputation in jeopardy. Nevertheless, many organisations find their credibility destroyed due to practices that are harmful and illegal, which could land a CEO’s in prison.
Individual Article Review Lily Cobian LAW/421 March 31, 2014 Ramon E. Ortiz-Velez Individual Article Review Introduction My article review is based on Sarbanes-Oxley and audit failure, a critical examination why the Sarbanes-Oxley Act of 2002 was established and why it is not a guarantee to prevent failure of audits. Sarbanes-Oxley Act talks about scandals of Enron which occurred in 2001 and even more appalling the company’s auditor, Arthur Anderson, found guilty of shredding company documents after finding out Enron Company was going to be audited. The exorbitant amounts of money auditors get paid to hide audit discrepancies was also beyond belief. The article went on to explain many companies hire relatives or friends to do their audits, resulting in fraud, money embezzlement, corruption and even the demise of companies. Resulting in the public losing faith in the accounting profession, the Sarbanes-Oxley Act passed in 2002 by congress was designed to restrict what company owners and auditors can and cannot do. From what I gathered in the article, ever since the implementation of the Sarbanes- Oxley Act there has been somewhat of an improvement but questions are still being asked as to why there are still issues that are not being targeted in hopes of preventing more audit failures. The article also talked about four common causes of audit failure: unintentional auditor mistakes, fraud, fatigue and auditor client relationships. The American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct clearly states an independent auditor because it produces a credible audit, however, when there is conflict of interest, the relation of a former employer, or a relative or even the fear of getting fire...
The legal and non-legal responses to situations have proven their effectiveness in the case of Australian citizen Alicia Gali’s unfair conviction in another country. The success of the legal and non-legal responses from both the UAE community’s perspective and Gali’s differ greatly due to the differing values and law systems.
Madura, Jeff. What Every Investor Needs to Know About Accounting Fraud. New York: McGraw-Hill, 2004. 1-156
In this assignment we will exam three case-studies and determine whether the best course of action would be litigation, ADR or criminal prosecution. In the first we look a case of embezzlement, the second is a case of product liability and the third involves a supplier providing non preforming goods. We will evaluate the specifics of each and determine the best course of action. Spoiler alert, some of these may involve more than one course of action.
Mr. Cherelstein had been informed of the company’s dual accounting records. Though he did not initiate or participate in the fraud, he engaged in the first step of Rest’s model because he was now aware of the unethical situation and its immorality as he felt compelled to do something about the situation. Furthermore, he understood that should the fraud be brought to light or suppliers refuse to stock the stores, it would result in the end of the
[17] Robert K. Elliot, CPA and John J. Willingham PhD, CPA, Management Fraud: Detection and Deterrence. New York: Petrocelli Books, Inc., 1980, pp. vii.
The reasons for fraud all surrounded Satyam attempted to meet investor’s expectations. As Raju wrote in his letter to the board of directors, the gap between actual operating profit and the one listed in the books began to grow exponentially. As mentioned earlier, promoters owned a small percentage of Satyam, where foreign and domestic investors owned the greatest percentage. If Satyam slightly revealed its poor performance, it could result in a takeover revealing the company’s poor
“Faced with what is right, to leave it undone shows a lack of courage” (Confucius Quotes, 2012). The person who does her duty, at great risk to her own interest, when most others would defy from fear is considered a hero (Schafer, 2004). Dr. Nancy Olivieri is a hero who blew the whistle on Apotex, University of Toronto (U of T) and the Hospital for Sick Children (HSC); and fought for her academic rights till the end. Whistle-blowing refers to actions of an employee that breach her loyalty to the organization but serves the public interest. When other constraints proved to be ineffective, whistle-blowing acts as a check on authority of the organization. Whistle-blowers expose severe forms of corruption, waste, and abuse of power within their organization and put the organization in a position where it is answerable to the public, thus enhancing its accountability (Cooper, 2006, pg. 198-205).
The management of Wells Fargo fail to take action to prohibit the illegal activities done by the bank instead they still continuing it until it is exposed to the public. It is clearly shown that there are some integrity problem and abuse of power from the management. To solve the problem, Wells Fargo should execute their annual examinations of systems and financial
Under what conditions, if any, is whistle-blowing morally permissible? ¬¬¬ ______________________________________________________________ This paper intends to identify any conditions where whistle blowing is morally permissible. Whistle blowing is commonly understood to be a public scale investigation, stipulated by either former or current employees predetermined to raise serious civil concerns, and in the process, publicly disclose illegitimate practices that resolve with the organisations effectively changing defective policy’s or products.
Although Hollate introduced a compliance program and code of conduct when it went public, the programs were put on “the back burner”. This outcome is not surprised for that the company does not pay attention to the programs. It is, therefore, important to “reinforce the values” and “employee a boundary system when actions are inconsistent with the code of conduct” for the purpose of early detection. Tyco provides a good example after its scandal, by initiating “mandatory annual compliance training for all its employees worldwide” and creating the Tyco Guide to Ethical Conduct to familiarize employees with company expectations and help them make ethical decisions. As tips is the most useful method for internal and external sources to detect frauds, the whistleblower hotline should be well communicated with encouragement on reporting any suspicious activity. In addition, to improve the effectiveness of the compliance program and code of conducts, Hollate should implement management monitoring and evaluation on a regular
By inducting ethical business practices, the need for whistleblowers will not be needed, but there is always someone that crosses the line. Therefore, by encouraging whistleblowing and supervised departmental and corporate performance concerning ethical questions. Whistleblowing is an ethical procedure when there is clear evidence of serious evidence, that will harm the public and the blower has tried to find an internal solution to effect change. The whistleblower who is associated with the unethical activity has a moral responsibility to do the right thing. Companies always know there is a possibility that the whistle will be blown, in this case the obstacle is created by knowledge that their employees stand to gain an advantage from uncovering corporate misbehaviour and thus they may be proactively looking for other people outside the organization to inform the authorities.