As the company prepares to embark on this exciting opportunity there are a few things that need to be review, therefore in preparation for our upcoming government contract bid it is important to perform a full financial status review before placing the bid. This report will discuss the effects of occupational fraud and abuse, U.S. Government oversight and how it affects the company, potential corruption schemes, and recommendations of types of accounting evidence and methods of gathering evidence to support financial review status.
The effect of occupational fraud and abuse on the company:
Occupational fraud and abuse can affect companies in many ways; it can affect revenue by 6% or more per year which can really make a huge impact on a small company more so than a larger company. Abuse and Fraud also affects a company’s reputation which causes a ripple effect, if a company is not reputable enough to draw in revenue than it loses revenue. Each of these have a big effect on a company’s survival and they may one by one or altogether be the reasons for a company going bankrupt and/or closing the doors for good. Undetected fraud and abuse can cause major chaos in a business and the effects can be devastating for the company and for all employees involved.
U.S. governmental oversight of accounting fraud and abuse and its effect on the company:
The oversight of accounting fraud and abuse by U.S. governmental agencies can have a huge impact on a company; U.S. governmental oversight has a larger impact on bigger corporations than small businesses but they still have an impact. There have been many scandals in large corporations over the years due to government oversight and it has cause...
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...ecommend the company to perform a full financial audit prior to issuing a contract bid to the government, as it is necessary to make sure that the company’s financials are free of any fraud or abuse and solid. It is appropriate to make certain that the financial status of the company is solid in light of the possibility of working with the government but this also allows us to provide recommendations for the health of the company. For the future.
Coates IV, J. C. (2007, Winter). The goals of the Sarbanes-Oxley Act. The Journal of Economic Prospectives, 21(1), 91-116. Retrieved from http://www.cbe.wwu.edu/dunn/rprnts.GoalsPromiseSOX.pdf
Singleton, T. W., & Singleton, A. J. (2010). Fraud auditing and forensic accounting (4th ed.). Hoboken, NJ: Wiley & Sons.
Wells, J. (2011). Principles of fraud examination (3rd ed.). Hoboken, NJ: Wiley.
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