Fraudulent Case Studies Samples For Students

Question 1

The financial position of an organization is determined by the correct entries in the books of account that are inspected and monitored by the internal control body of management. The internal audit is mandated to thoroughly examine, making reports, and evaluating the degree of adequacy of the organization internal control in accordance to the justified economic use of the available resources. In case of Regina the internal control was reluctant in taking the necessary measure to curb the fraudulent activity to their investor. Action of Sheelen clearly indicated the abnormalities in the book of account by instructing for the ...

Financial crisis is an economic status where there are extreme difficulties. One of the economies that experienced adverse effects as a result of the crisis is the United States. The country faced extensive challenges that influenced the livelihood of the entire nation. However, it remains a challenge on who was the main cause of the financial crisis that left the economy of the United States immersed to extensive depression. The main groups that have been associated with the crisis are the government, Wall Street investors as well as American homeowners. Some analysts argued that the government was unable to control the ...

Since time immemorial, the conduct of two or more parties in business transactions has been one of a warring nature. This led to the inception of contract law so as try to iron out any friction that might arise during the usual business transactions. Contract law was created with an aim of governing all the essential practices during the enforcement of a contract. Categorically, contract law has continuously grown to encompass emergent issues that include the obligation of an employer to the actions of an employee and that of a minor in the entering into a contract. Additionally, other implied aspects of good ...

Executive Summary

This case study focuses on identifying fraudulent issues taking place in the given four situation of Forensic Accounting. It identifies the issue on hand for every situation and goes further to discuss the in details the presence of elements such as coercion, collusion, and concealment. Nevertheless, the paper utilizes the fraud triangle to explain how the fraudulent acts are committed. The conclusion for each situation discusses the possible ways of addressing the issues being identified.

Introduction

Fraud have been on rise in forensic Accounting creating path for more investigations in order to identify ways in which these frauds arise and ...

Company and situation

According to Biegelman and Bartow (2012), WorldCom Group began in 1983 following the breakup of AT&T. It began as Long Distance Discount Services (LDDS) offering telecommunication services to local retail and commercial customers in the Southern States where the two major telecommunication companies – Sprint and MCI had little presence. The company grew by acquiring other companies and in 1993 it was declared the fourth largest long distance carrier in the US (Biegelman & Bartow, 2012). It was officially renamed WorldCom in 1995 and continued a period of great acquisitions of more than 60 companies. However, between 1999 and 2002, the ...

1. With a 22.7% gross profit ratio, and a 5% return on assets, there is a huge red flag raised. It makes no sense when looking at Crazy Eddie’s figures as to why the profit ratio should be so low. With a profit margin of just 3% over a three-year period, a red flag is raised. This is because with so many millions of dollars in sales, one would expect the gross profit ratio and return on assets to be higher, especially since the chain was expanding during this time period. Because of this, an audit was necessary in order to determine where the ...

1) The word "corrupt" refers to a person’s act(s) of being dishonest and engaging in practices such as lack of integrity, crookedness, and bribery ("Definition of CORRUPT", 2016). It also refers to the destruction of integrity thus causing an individual to be dishonest and disloyal. In the case of Arthur Anderson, the prosecution noted that the accounting firm dishonestly encouraged Enron employees to exercise routine destruction of documents knowing that the government’s investigations into the acts of the accounting firm were imminent. The deliberate intention of the destruction and hence wrongdoing of Anderson was meant to ...

Audit and Internal Control

Question 1 - Relationship between the Concepts of ‘Business Risk’ and ‘Financial Statement Risk’
The business risk and financial statement risk tend to have a direct relationship with one another because occurrence of business risks, if not addressed by the internal management of ABCDE Company in a timely and wise manner, will potentially result in material misstatements of the figures in financial statements of ABCDE Company. For instance, due to increase in competition, the demand for cleaning equipment sold by ABCDE Company to commercial cleaning contractors decreases which itself is identified as a business risk for ABCDE Company. Due ...

Introduction

This paper contains two parts. Part of this paper offers a brief explanation regarding the role of the directors in a company. This part specifically discusses the reason behind the existence of the directors of a company’s duty to prevent insolvent trading. It also discusses the circumstances and the results after the court lifting the veil of incorporation for the wrong of insolvent trading upon a director of a company.

Discussion

Directors of companies are under a duty under the Corporation Act provisions and the common law to prevent companies from incurring debts while they are insolvent. At common law, the director’s duty to ...

The recent global financial crisis of 2009 had far reaching implications for numerous sectors of the economy of the United States. The crisis also affected other institutions in other countries. In the United States, one of the industries that took a severe beating from the 2009 financial crisis was the banking industry. The crisis resulted in banks finding themselves in hitherto uncharted waters. It was a terrain which many banks found difficult to navigate. Indeed, some of the banks were even on the brink of being wound up. While the financial crisis played a role in the challenges that faced these banks, ...

Identity theft is a crime characterized by wrong acquisition and use of another person’s data in a deceptive and fraudulent manner for economic or other purposes. The World Wide Web has made it possible to obtain another person’s data and use in a fraudulent manner without his consent. Unlike fingerprints which are unique for each and every person, personal data especially social security numbers, bank account numbers, telephone calling card numbers and other information if they fall in the wrong hands, they may be used for the wrong reasons and cause considerable damage. In the United States for instance, a lot ...

Re:

Introduction

In 2000, the Chief Executive Officer (CEO) of Qwest, Joseph Nacchio, was charged civil and criminal liabilities after it has been found that he violated the provisions of GAAP against fraud and insider trading. He was sentenced to six years in prison in 2007 and was slapped with a $19 Million fine and a forfeiture order for proven illegal stock sales transactions worth $52 Million. In this memo, the author discusses the different aspects of Qwest’s case, emphasizing the role of GAAP and the PCAOB.

The Generally Accepted Accounting Principles (GAAP) refers to a standard framework of ...

Reducing Debts at Credit Solutions of America

Credit Solutions America (CSA) is a company that is headquartered in Richardson, Texas but has many branches in many other states. The company has several customers who are enrolled in debt reduction programs. The company helps those customers who do not want to file for bankruptcy, but they would wish to settle their debts. Despite its years of success, the company was sued in eight states after it was found to be engaging in fraudulent activities. Although the methods employed by the company in their debt reduction program puts the customers in a stressful situation, they are left satisfied ...

BUSINESS: UNETHICAL BUSINESS PRACTICES

L. Dennis Kozlowski, CEO of Tyco International Scandal
A fish rots from the top down. This phrase sums up the scandal of Tyco International when its CEO, Dennis Kozlowski, was found guilty on many fraudulent accounts. His actions were in direct violation of the accounting ethics. Kozlowski was arrested along with many of his company officials as partners in crime. When the CEO of a company is involved in violating code of ethics and professionalism, the employees and subordinates find it convenient to follow suit.
Former chief executive and chairman of Tyco International, Dennis Kozlowski and firm’s CFO ...

VOLKSWAGEN CASE STUDY

Executive summary:
Volkswagen is the leading manufacturer of car products. This company holds Volkswagen group and produced a variety of models. Recently, Volkswagen has been involved in the emission scandals of their equipped vehicles. The company vehicles are equipped with software that was cheating on emission tests. Hence, Volkswagen is the top selling brand of Volkswagen group. Since 1975 the company has been treated as world largest automaker in the world. Volkswagen has the most cars of the automobile manufacturer which has multiple revisions of model names. In this, the crisis management of the Volkswagen emission scandal has been ...

Alexander (2007) tells us that duty ethics, or deontology, is a normative theory regarding what people should do, rather than what they should be. Hence, duty ethics is chiefly concerned with actions people take, rather than the consequences stemming from those actions. Deontology, in broad strokes, posits that if an action is right in principle, then there is no moral obligation forbidding that action – it need not be avoided, regardless of consequences.
Deontological theories are best understood in contrast to their consequentialist counterparts (Alexander, 2007). Consequentialism dictates that actions or intentions ought to be judged by the state of ...

1. What governance practices could have prevented the demise of Barings Bank?
Barings Bank was founded in 1962. It is previously known as Baring Brothers & Co. It was the oldest merchant bank in England and collapsed on February 26, 1995. The bank had been faced bankruptcy for the second time because of this reason. There were several issues that it had been processed. It changed the regulatory of the development of worldwide financial transactions, indoor trading, executive remuneration and misuse of pensions fund made it strengthen through those changes. As per Hurst and Wood (1993) report, there were many ...

Cases of fraud usually take place in both huge firms as well as small firms, and in this case, we will focus on Mamtek, which was a small firm. There are various reasons that usually led to cases of fraud in the various firms. Most of the fraud cases usually involve manipulating the various stakeholders for personal gain. Such decisions to commit fraud are usually for personal gains or to achieve performance within short durations rather than following the right procedures which would bring positive results in the long run. Mamtek was a Hong Kong based manufacturing firm that ...

Introduction

In his case, Ferrell (2012) discusses Enron Corporation from when it was formed, when it collapsed and all that followed after its collapse. Enron Corporation is an American company headquartered in Houston, Texas. This company was formed in the year 1985 through the merging of two gas pipeline companies. Enron Corporation deals in products and services such as natural gas, and also electric power generation and distribution. However, in the year 2001 when Ken Lay was the Chief executive officer and at his time of his stepping down, Enron was faced with financial problems which eventually led to its ...

The process of team or group development is a long drawn process. It goes through different stages beginning with collecting of strangers to coming together as a group. Bruce Tuckerman, an acclaimed psychologist, came up with following steps “forming, storming, norming, and performing”. Elaborating on each of these stages,

Forming

At this stage most members are positive and polite, though some may be anxious. There may be a few who are even excited. This is due to the fact that they haven’t fully understood what the team will do. This stage can last so long as members get to know each other.

Storming

...

Fraud is a common problem in the contemporary legal landscape. Most evident after the fact, it is one of the primary causes of the 2007-2008 financial crisis, sending the country into a recession not seen before since the Great Depression. And yet, there are regulations and regulatory bodies in place that are tasked with eliminating the practice of fraud in the financial sector. In particular, the Securities and Exchange Commission is tasked with the prosecution and enforcement of suits against fraudulent traders. The present case is fertile ground for discussion in this regard, dealing directly with the phenomenon of insider trading ...

Delineate the ethical issues and dilemmas the company faced.

The coca cola company has the largest distribution systems globally, and is also among the largest beverage companies marketing four of the world’s top five leading soft drinks (Ferrell et al 2011). There has been ethical issues and dilemmas which have caused it to lose its stand in the global market, stocks as well as deter its future growth. The company had ethical issues related to product safety where they were accused of selling hazardous products to consumers. This happened in Belgium in June 1999, about thirty school children became ill after consuming Coca Cola products. This contamination ...

Executive Summary

One Tel Communications was the fourth largest telecommunications company in Australia. It touches on matters regarding poor management, fraudulent misstatements, the use of remuneration packages for self-interest and lack of regard of accounting policies and legal regulations. These, together with other factors, have led the company to liquidation in 2001.
This report summarizes the key facts from the start of the company business, its capital structure, the people involved in the accounting scandal, the auditing scenario, factors that contributed to the business failure, the audit risks existing at that time, to the conclusion and possible audit procedures that ...

Programme / Qualification name: BSc (Hons) Business Administration

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I confirm that this is my own work and that I have not plagiarised any part of it. I have also noted the assessment criteria and ...

There are many disaster relief agencies that play a very vital role in responding to emergencies example is FEMA and the Red Cross. Natural disasters have displaced so many people around the world leaving them homeless and jobless. Disasters like hurricanes and earthquakes are unavoidable and many people have been losing their lives because not all disasters come with a warning. There has been a rise of disasters in the world today and good strategies to deal with all types of disasters should be put in place. Trainings should be conducted and more people recruited in learning how to deal with disasters ...